As of the past week Turkish producers are observed to be remaining on the sidelines of the scrap markets as Ramadan got underway. Last week Turkish producers concluded few bookings and they have made a quiet start to the current week.
Ex-Europe HMS I/II 70:30, which was at $382/mt CFR in the latest transaction, is currently being offered at $379.75/mt CFR. The increased strength of the euro against the dollar has caused ex-Europe scrap offers to soften to some extent.
There has not been any ex-US scrap offer heard. In the latest transaction, ex-US HMS I/II 80:20 was booked at the level of $395/mt CFR and, although offer levels were subsequently heard to have increased, no transaction was seen at the higher levels. Turkish producers last week preferred to evaluate ex-Baltic scrap offers rather than ex-US offers. Some ex- Baltic transactions have been heard at the price level of $393-398/mt CFR.
Ex-Black Sea A3 grade scrap offers are seen to be declining. Ex-Romania A3 grade scrap prices, which had increased above $400/mt CFR due to the impact of increased collection prices, have this week decreased. Scrap collection prices in Romania are reported to have again decreased to the level of $340-350/mt. Producers, who are not making bookings right now, report that they have no difficulties in finding offers around $380/mt CFR.
The most important reason for producers taking a break for scrap bookings is the considerable decrease in demand for finished products on account of Ramadan. Since they purchased large amounts of scrap previously, producers are likely to suspend scrap bookings at least until the finished product side becomes clear.