Changes in the exchange rate have constituted the main factor affecting price levels in ex-Europe scrap bookings. In a booking concluded at the end of last week, the price of ex-Europe HMS I/II 70:30 scrap was at the level of $250/mt CFR; however, due to the fluctuation in the exchange rate, the same quality scrap was bought at the level of $246/mt CFR in another booking concluded on June 8, though there was no real decrease in price levels.
As the US domestic scrap market is quite strong, prices have shown increases with the shredded scrap price reaching the level of $240/lt. In the ex-US scrap bookings concluded in Turkey at the weekend, HMS I/II 80:20 scrap was at $252.5-255/mt CFR, shredded was at $257.5-260/mt CFR and P&S scrap was in the price range of $262.5-265/mt CFR. It is heard that offers given for HMS I/II 80:20 scrap are this week standing at around the level of $260/mt CFR.
Ex-Black Sea A3 grade scrap offers are this week around $250/mt CFR. However, no booking has yet been heard at this level, since for the time being Turkish mills are not inclined to buy A3 grade scrap, especially after the ex-deep sea scrap bookings they have concluded.
Having recommenced their scrap purchases after being persuaded that scrap prices have hit the bottom, the Turkish mills have also raised their finished steel prices. The increased robustness of demand observed in the finished steel markets is expected to ensure that the Turkish mills will continue their scrap purchases.