Scrap market indicates rise

International scrap market starts to indicate signs of rebound in early September following the slowdown in August. Domestic prices in the US decreased significantly by early August as compared to July and although prices tried to rebound some, overall price levels were observed to be far below the July levels. As of August last week, price increases were confirmed with the $45/mt rise in Ford auto bundle tender and $10/mt increase in Chrysler tender. Consequently, offers for HMS I/II 80:20 scrap ex-US to Turkish mills increased to reach levels above $270/mt CFR Turkish ports. A scrap cargo ex-Europe, including 25,000 mts of HMS I/II 75:25 and 5,000 mts of shredded scrap, was booked by a Turkish mill at $264.50/mt CFR Marmara level last week; however, European offers indicate increase this week, as well. This could be attributed to the returning of European mills to the market from holidays with the initiation of September. In the Black Sea region, we see that Russian domestic market is still strong and offers are hovering at high levels (Ruble 6,300-6,700/mt). In the Turkish market, A3 scrap offers ex-Black Sea indicate variety. There are offers at $265-270/mt CFR Turkish ports for small tonnage cargoes, along with offers at $275-280/mt CFR Turkish ports for larger tonnages. The strong domestic market is an obstacle in front of diverting material to the ports. Ex-Baltic Sea offers are also expected to rise and price levels are considered to reach around $280/mt CFR Turkish ports. Taking into account the fact that Euro/$ exchange rate is high, that Turkish mills have not completed their purchases for October shipments yet and that the local markets of the countries who supply Turkish mills are strong; it seems that there is not much reason for prices to decline. The prices are expected to range at $270-280/mt CFR Turkish ports for October shipment scrap offers.