Scrap prices set new records

Tuesday, 18 December 2007 09:54:36 (GMT+3)   |  
Scrap prices, whose impending increase we had long been predicting, have exceeded the level of $400/mt CIF Turkish ports for the first time in history, and continue to inch toward new record highs. Under the influence of elevated freight rates and the approach of the various holidays, with the shortage of supply being the key factor given the high level of demand from all scrap-consuming countries across the world, scrap prices have reached record levels.

It was heard that towards the end of last week, a scrap cargo consisting of 6,000 mts of ex-deep sea shredded scrap and 25,000 mts of HMS I/II 80:20 scrap was booked at the level of $405/mt CIF Nemrut; meanwhile, no ex-deep sea scrap booking has been heard from then up to today, Tuesday. Meanwhile, in another ex-UK booking, the price levels are as follows:

20,000 mts of  HMS I/II 80:20 scrap

$402.5/mt CIF Nemrut

10,000 mts of shredded scrap

$407.5/mt CIF Nemrut

5.000 mts of P&S scrap

$412.5/mt CIF Nemrut

It is very unusual for the price of HMS I/II 80:20 scrap - which stood around the level of $375/mt just last week - to increase by around $30/mt and to reach the abovementioned levels without touching the level of $380-390$/mt CFR. This week's offers for ex-deep sea scrap are estimated to stand even above the said levels.

Ex-Black Sea scrap prices have also exceeded the level of $400/mt CFR, following a similar trend to that of ex-deep sea scrap. In a booking concluded on Monday, December 17, ex-Russia A3 grade scrap found a buyer at the level of $410/mt CFR Marmara. This week's offers for ex-Black Sea scrap are estimated to stand in the range of $410-415/mt CFR.

The scrap markets are expected to make a vibrant entry into 2008, with strong demand being registered from all buyer countries across the world. The new levels which scrap prices are thought likely to reach are expected to cause many eyebrows to be raised in amazement.


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