Scrap markets started to climb

We reported in our last analysis dated August 10 that scrap markets, which were calm for a long period, started to indicate some kind of activity. With these activities, the upward pricing trend in the local Russian market, the rise of $15/mt in scrap prices in the US caused an increase in the offers given to Turkish mills by foreign scrap suppliers. We reported the price levels in certain bookings ex-deep sea in our Price Reports-Raw Materials section last week. In addition to these bookings, price levels for different compositions are as follows: a scrap cargo composed of 10,000 mts of shredded scrap and 20,000 mts of HMS I/II 80:20 scrap ex-Canada has been booked at $266/mt CFR Marmara, and a scrap cargo composed of 7,000 mts of shredded scrap and 30,000 mts of A3 scrap ex-Sweden has been booked at $265/mt CFR Nemrut. On the side of Black Sea, scrap quantities for export indicated a decline, causing export offers to increase. Certain trading firms are heard not to have received offers for large-tonnage A3 grade scrap ex-Russia at a level below $265/mt CFR. Under these circumstances, it appears that purchases of large-tonnage A3 grade scrap ex-Russia by Turkish mills will not be lower than $267-268/mt CFR levels. A few deep sea scrap bookings for September shipments are expected, while we also hear that certain traders refrain from giving offers with a further increase expectation of prices.