Last week, only a limited number of scrap import deals were concluded in the Turkish scrap market. Due to the Christmas holidays, scrap suppliers from Europe and the US appear to be absent from the market. On the other hand, with heavy snowfalls in Europe and on the East Coast of the US, scrap supplies have been facing increasing difficulties in these regions.
In the US domestic market, scrap prices are expected to increase by about $30-60/mt in January, depending on the quality of material. Last week, the latest scrap transaction from the US to Turkey was concluded at the level of $475/mt CFR for HMS I/II 90:10 scrap. While no new offers have been heard so far this week, it is thought that prices have moved up to higher levels.
On the other hand, ex-Black Sea A3 scrap offers continue to climb up. After the conclusion of an ex-Russia A3 scrap transaction to Turkey at $475/mt CFR Nemrut, new scrap offers have moved up to this level. Meanwhile, a Turkish producer is reported to have agreed a deal for an additional scrap cargo from the Baltic, consisting of 4,500 mt of A3 grade material, at $478/mt CFR.
The continuing scrap price increases reveal the need for increased accuracy in tonnage calculations on the part of steelmakers, so that they are not later obliged to book additional volumes at higher prices.