Scrap prices soften along with demand

After scrap prices had previously climbed up to the level of $465/mt CFR on the back of the heightened buying activity from Turkey, a price correction has been observed in the market due to the almost complete halt in demand.
 
In Turkey there were no deep sea scrap bookings last week. The last transaction price for ex-US HMS I/II was recorded at $465/mt CFR in early April and, although no offers or bookings have been heard, ex-US HMS I/II is currently thought to be at levels below $450/mt CFR.
 
Ex-European scrap offers have also seen a decline. HMS I/II 70:30 was offered at $455/mt CFR last week and this week offers of the same material are standing at $435/mt. However, this offer level has not been accepted yet by the Turkish mills, which are not in the mood to buy.
 
Black Sea A3 scrap supply has also increased along with number of offers available. A3 scrap, which was offered at $455/mt CFR last week, has been bought at the level of $420/mt CFR this week. New offers are heard to be at levels below $420/mt CFR.
 
The main reasons for the correction in scrap prices are; scrap supply has increased with the arrival of spring, mills' condensed buying activity in March has given them the option of not buying scrap for a while and Chinese mills, which have long been expected to buy scrap, have not accepted the newly increased prices and have delayed their purchases. It is thought that the Turkish mills will carry on for a while buying just small tonnages of local scrap and also some small quantities of imported scrap. They are expected to wait until a recovery is seen in final product sales before they start to buy deep sea scrap again.