Although not many bookings have been heard in the Turkish scrap market, it is observed that prices have not shown decreases but have instead been able to maintain their sideways movement. Although scrap suppliers and producers do not appear to be very visible in the market, scrap deals have been concluded under suitable conditions.
Prices for ex-US HMS I/II 80:20 scrap have been heard at the level of $350/mt CFR. With the influence of both the holidays and the weather, ex-US scrap supplies are seen to have decreased. Although Turkish producers have not yet accepted to purchase ex-US HMSI/II 80:20 at $350/mt CFR, prices are not expected to soften.
Ex-Europe scrap prices are not expected to soften either. In Italy, supply and demand are seen to be in equilibrium for the first time in a long while. With the Italian mills halting their production due to the summer holiday, demand has dropped down to reach equilibrium with the already low supply levels. In September, when the Italian mills restart production and begin to purchase scrap, demand levels may again start to exceed supply. Meanwhile, the increased strength of the euro against the US dollar prevents ex-Europe scrap offers in Turkey from declining.
Scrap collection prices are still high in the Black Sea region. Although scrap collection costs have not declined below $310-315/mt in Romania, A3 grade scrap offers given to Turkey from this country have not increased above the level of $345-350/mt CFR. This is because the Turkish mills have accepted offers at the level of $340-342/mt CFR but have not agreed to pay higher levels yet.
The Turkish mills are expected to continue purchasing scrap this week, albeit at low tonnages, and they are expected to give priority to scrap from the Black Sea and the Mediterranean Sea, which have shorter lead times.