Last week, following debates over the possible impact of floods in Queensland, Australia on raw material prices, scrap prices indicate a sudden rise. This week, greater uncertainty surrounds the future scrap price trend. In Turkey, while many ex-US and ex-Europe scrap offers are heard, Turkish mills are showing some hesitation as regards conclusions of new bookings for the time being.
As SteelOrbis previously reported, in the latest scrap transaction from the US to Turkey, a deal for a cargo composed of 16,000 mt of shredded scrap, 8,000 mt of HMS I/II 80:20 scrap and 2,000 mt of P&S scrap has been concluded at $522/mt CFR. This week, ex-US offers have been heard at $515/mt CFR and $525/mt CFR.
As a result of the return of European scrap suppliers from their holidays with scrap offers for February shipments, ex-Europe scrap offers in the market have increased in number. Ex-Europe scrap offers to Turkey are currently standing at $504/mt for HMS I/II 70:30 scrap and at $515/mt CFR for HMS I/II 80:20 scrap.
On the other hand, ex-Black Sea A3 scrap transaction levels for Turkey stand at $498/mt CFR Marmara and $505/mt CFR Nemrut. Meanwhile, due to the uncertain market conditions, scrap offers from this region to Turkey vary and generally stand in the price range of $500-510/mt CFR. However, offers at $498/mt CFR are also heard to be available in the market.
SteelOrbis has learned that some international trading companies are now offering scrap materials to Turkey, which they had previously purchased at lower prices. Since these cargoes were bought at lower costs compared to current mainstream offers, these suppliers are expected to show greater flexibility in their prices. Greater clarity is anticipated in the Turkish market after the sales of these cargoes. Following last week's sudden price hike, Turkish producers, now faced with many scrap offers, are expected to conclude bookings once they figure out the exact situation of the market. Some producers consider the abundance of offers as a sign of imminent price softening and so they are likely to postpone their scrap purchases during the current week.