In Turkey, both domestic and imported scrap prices have continued to increase. After trending sideways for about two months, domestic scrap prices in Turkey, which had indicated an increase last week, registered a further slight rise yesterday, December 6.
Ex-US scrap offers to Turkey are fairly scarce at present. Against the background of short scrap supplies, the increased demand of US mills with low inventories has resulted in a $35-45/mt increase in local US scrap prices. In one ex-US scrap deal to Turkey concluded at the weekend, the price level for HMS I/II 80:20 scrap was at $415/mt CFR, while the price for shredded scrap was $420/mt CFR, with P&S scrap standing at $425/mt CFR.
In the European market, especially in Spain, Italy and the UK, scrap prices have also risen. As winter conditions become more difficult, scrap collection activities in Europe have slowed down. In the latest scrap booking by Turkish mills, the price of ex-Europe HMS I/II 80:20 scrap was at $410/mt CFR. For the same grade scrap, offers are expected to rise higher than $415/mt CFR this week.
Also this week, ex-Black Sea A3 scrap offers are standing in the price range of $410-415/mt CFR. So far, Turkish producers have not yet accepted levels above $410/mt CFR. In the latest bookings heard, the price level for A3 scrap stood at $409/mt CFR Nemrut and $407/mt CFR Marmara.
Scrap prices are expected to maintain their strength for some time, with reports of price increases coming from all markets. Turkish mills' scrap purchase volumes will be determined by their production volumes, and thus by demand for finished steel products. Turkish steelmakers are currently seeking to reflect the scrap price increases in their finished steel sales prices.