Last week we mentioned that the Turkish producers were in the market to buy scrap and that we expected deals would continue to be concluded. In fact, in a lot of deals concluded up to last weekend, price levels indicated an increase compared to the previous week.
In the deals concluded early last week the price level of ex-deep sea HMS I/II 80:20 scrap was at $261.5/mt CFR Turkey. The price of the same material was $265/mt CFR Turkey in the last deal of the week. It is observed that the US domestic market is also active these days, in line with the global markets. Although this week a definite price level for ex-US scrap offers to Turkey has not yet been heard, market players think that the price level will be likely at over $265/mt CFR Turkey for HMS I/II 80:20 grade scrap.
In ex-Europe deals last week, the price levels in Turkey were at $256/mt CFR Turkey, up by $10/mt compared to the previous week.
In the latest deals, the price level of ex-Baltic Sea A3 grade scrap has been at $270/mt CFR Turkey. Meanwhile, the latest deal level of ex-Black Sea A3 grade scrap has been at over $260/mt CFR Turkey, whereas the latest offers have been heard at around $265/mt CFR Turkey.
Influenced by the uptrend in scrap pries, steelmaking costs are on an uptrend. Thus, the Turkish longs producers have increased their finished steel prices to $470/mt FOB. It is thought that the stability of finished steel demand in the export markets is in particular likely to influence the scrap markets.