Last week, Turkish steelmakers continued their scrap bookings, with their purchases lifting scrap prices further.
The price level of ex-US scrap has been heard at $389/mt CFR for a cargo consisting of 25,000 mt of HMS I/II 80:20, 5,000 mt of shredded scrap and 10,000 mt of P&S scrap. In an offer reported this week, the price level for ex-US HMS I/II 80:30 material was at $390/mt CFR, while P&S scrap was offered at $400/mt CFR. As of today, there are no offers for ex-US HMS I/II 80:20 material below $390/mt CFR.
Last week, a number of ex-UK scrap offers were heard. The price range for these offers was $378-382/mt CFR. Meanwhile, two European scrap transactions to the Turkish market were heard at $373/mt CFR and $375/mt CFR for HMS I/II 70:30 scrap. While no ex-Europe scrap offers have been heard so far this week, prices are expected to be higher as compared to last week. It is also reported that scrap supplies in Europe as not as strong as in previous months.
Black Sea origin scrap prices are showing an uptrend. Both in Romania and in Russia, scrap collecting costs have risen. In the latest transactions, the price of A3 scrap has risen to $380/mt CFR Nemrut. Last week, ex-Baltic transactions for A3 scrap were in the price range of $383-387/mt CFR. Offers for ex-Black Sea A3 scrap this weak stand at approximately $385/mt CFR.
Although Turkish producers have not seen any significant improvement in their finished steel product sales, their demand for scrap continues, backed by support from semi-finished product sales. As the winter season approaches, scrap collecting activities are expected to become more difficult, resulting in reduced scrap supplies. Besides daily needs, inventory replenishments for winter are expected to keep scrap demand strong for a while.