We previously reported that Turkish steel producers have restarted their scrap purchases as from last week onwards. The price levels of these purchases have already been published in the SteelOrbis Price Reports section.
This week, with some more steel producers still in the market to book cargoes, there are also scrap suppliers offering material in response to this demand, as per market information that has reached SteelOrbis.
In last week's cargoes booked ex-US, the price of HMS I/II 80:20 moved up to $460/mt CFR from the previous level of $450/mt CFR. In an offer made to Turkey this week, HMS I/II 80:20 has been offered at $465/mt CFR, shredded has been offered at $470/mt CFR, with P&S at $475/mt CFR.
Ex-Europe cargo bookings initially stood at $443/mt CFR early last week for HMS I/II 80:20; however, towards the end of the week, this price level was no longer available. The increasing strength of the euro against the US dollar has made it impossible to find offers at this level in Europe. The offer levels for this week are at $448/mt CFR for HMS I/II 75:25 and at $473/mt CFR for HMS I. SteelOrbis understands that the price level for HMS I/II 80:20 is at around $455/mt CFR.
Following last week's A3 bookings concluded at $440/mt CFR ex-Black Sea, the price levels have increased under the impact of heavy snowfall. The collecting prices in Romania have moved up as well, and A3 grade scrap ex-Romania has climbed up to reach levels of $455-460/mt CFR in Turkey.
From the beginning of 2011, the purchasing strategies of Turkish steel producers have been to delay new purchases for a while before starting to book new cargoes. This strategy has been necessitated by the impact of the situation in the finished steel markets. The Turkish steel producers will apparently continue buying in this manner unless the finished steel markets become more stable. This situation prevents the scrap markets from gathering a more sustainable momentum.