Quiet period in scrap markets

Turkish scrap market, which has been quite active for the last two weeks with many concluded bookings, is rather calm this week. Turkish mills, which were observed to be very active in their purchases for deep sea scrap ex-US, Europe and Baltic Sea, and for Black Sea scrap, have started this week calm. With the impact of bookings concluded in the previous weeks certain mills expect scrap prices to soften; however, in the light of current product prices, most mills will not prefer the prices to soften. In fact, a possible softening in scrap prices is likely to have a negative effect on product prices. The reason for the calmness this week is that Turkish mills, which have almost completed their August sales in terms of products, have directed their focus on September. Once product prices for September start to emerge, mills will feel more comfortable about how much they will pay for scrap. It means, the current situation in scrap market reflects Turkish mills' cautious attitudes. No softening in offers for deep sea scrap ex-US, Europe, and Baltic Sea is observed this week. Prices keep their previous week levels. These levels are $300-305/mt CFR Turkish ports for shredded scrap, $290-293/mt CFR Turkish ports for HMS I/II 80:20, 280-283$/mt CFR Turkish ports for HMS I/II 60:40. Offer levels for A3 grade scrap ex-Black Sea are at $295/mt CFR Turkish ports; however, no booking at this level has been concluded yet. Scrap subject to price pressure the most is Israeli, Lebanese and Algerian origin scrap, which is booked in small tonnages. In fact the prices of scrap ex-these origins do not have an impact on product prices as much as Black Sea scrap and deep sea scrap. SteelOrbis forecasts that market will retain its horizontal trend for a while without any sharp ups and downs.