It is still observed that the Turkish producers are not out of the market yet and that they are continuing to negotiate until the prices come to their desired levels; if not, they are delaying their scrap purchase activities. Although it is heard that there are a few deals, it is seen that the prices have softened compared to recent weeks.
The price level of ex-Europe HMS I/II 70:30, which was concluded at $219/mt CFR Turkey two weeks ago, has declined to $208/mt CFR in the past week. Also, lack of demand in the European local markets is causing the ex-Europe scrap export offers to decline. While no offer price levels have been heard yet in this week so far, it is thought that the price level of below $208/mt CFR would be accepted.
After the softening in the US local market in February, shredded scrap prices have declined further by $25-30/lt to the levels of $190-200/lt and demand for this material is still not strong. No ex-US scrap offers have been accepted in Turkey for a long time due to their high price levels. Although it is heard that an ex-US scrap supplier has set its price levels at $215/mt CFR for HMS I/II 80:20, at $220/mt CFR for shredded scrap and at $225/mt CFR for P&S scrap, no confirmation has been received if this cargo has been sold yet.
Looking at ex-Black Sea A3 scrap, it is observed that the ex-Romania offers are still advantageous against the ex-Russia scrap offers. While it seems that ex Russia A3 scrap offers are having difficulties in decreasing below $250/mt CFR, it is heard that ex-Romania A3 scrap offers have declined to around $205/mt CFR. In a few ex-Romania A3 scrap deals in the last week, the prices were at around $210/mt CFR.
Suppliers of ex-short sea scrap with little tonnages such as Israel and Algeria are also having difficulties in making the prices accepted. Turkish producers' price idea for this region's scrap is currently at around $180/mt CFR.
It is observed that Turkish producers, who have focused on price levels instead of quality in these days, are buying scrap if they reach to an agreement. However, due to the fact that billet prices are advantageous over scrap prices, Turkish producers are operating their EAFs with minimum rate while they are concentrating on their rolling mills instead.