Scrap prices continue to decline

Tuesday, 05 June 2012 16:27:49 (GMT+3)   |  
Last week, the decrease in scrap prices had gained momentum after an ex-Canada scrap booking to Turkey at $403/mt CFR Nemrut Port, with the ex-US HMS I/II 80:20 price for Turkey declining from $412/mt CFR early last week to $400/mt CFR at the weekend. SteelOrbis has learned from market sources that as of today, June 5, the ex-US HMS I/II 80:20 price for Turkey have decreased even below $400/mt CFR. Taking ex-US scrap prices as their benchmark, ex-Europe scrap suppliers are offering HMS I/II 80:20 to Turkey at about $390/mt CFR and below; however, no transaction has been heard so far at this price level. The weakening of the euro against the US dollar provides room for ex-Europe scrap suppliers to further push down their prices.
 
SteelOrbis has heard an ex-Russia A3 scrap booking to Turkey at $385/mt CFR Marmara Sea ports. In the meantime, scrap collection prices in Romania have decreased somewhat to $345/mt, while ex-Black Sea A3 scrap offers to Turkey are now standing at the price range of $380-385/mt CFR.
 
On the other hand, Lebanese scrap is offered to Turkish mills at $370/mt CFR, while Turkish mills state that they may conclude bookings at $360-370/mt CFR after negotiating.
 
Although Turkish mills' scrap bookings are very scarce, they are expected to conclude new purchases as they have not yet met their scrap needs.

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