Scrap markets active

Approaching July has caused scrap markets to gain momentum. Holiday period is around the corner, and suppliers think that Turkish mills do not have concluded enough bookings in terms of July scrap imports. This has inevitably brought activity to the market. Having started with their July shipment purchases, Turkish mills might be considered as having just started a dense purchasing period that will last for a while, taking the approaching holiday season into account. Current price levels for HMS I/II 60:40 scrap ex-Europe and ex-US, known as “deep sea” scrap, are at around $280/mt CFR Turkish ports, for HMS I/II 80:20 scrap at around $285/mt CFR Turkish ports and for shredded scrap at around $293/mt CFR Turkish ports. Finding price levels below $285/mt CFR Turkish ports for A3 scrap ex-Black Sea seems a bit difficult. If we analyze these levels, we see that they indicate a slight increase compared to previous week. Major reasons for this increase are the strong demand in all regions, especially in Turkey, approaching holiday period, which will cause tightness in supply, and the rise in charcoal prices since Brazil is having tightness in charcoal supply. Scrap suppliers and producers, both of which are of the opinion that the prices will increase, are pleased with this situation. In fact, a balanced rise in the prices is an advantage for both sides. On the side of producers, the fact that product prices in the local Turkish market are around $560/mt supports the rise in scrap prices. On the other hand, on the side of suppliers, which face problems in scrap collection in rapidly rising markets, this balanced rise prevents such problems. It is thought that more and more bookings will be concluded in the market, where there is mutual pleasure and a balanced situation. You may follow these bookings in our price reports/raw material section.