Scrap prices start to edge up in Turkish market

Having been on a downward trend in Turkey for quite a while, it is observed that scrap prices have lately started to edge upwards. Last week, Turkish producers concluded quite a lot of scrap bookings, particularly from the US.
 
In all bookings ex-US, prices were at $445/mt CFR for HMS I/II 80:20, $450/mt CFR for shredded, and $455/mt CFR for P&S scrap.
 
No scrap bookings ex-US has been heard so far this week. SteelOrbis hears that scrap supply is strong in the US.
 
Price levels for European scrap are currently at $431/mt CFR for HMS I/II 70:30 and at $440/mt CFR for HMS I/II 80:20. The price of HMS I/II scrap used to be at $420/mt CFR in previous weeks, but has moved up under the impact of the €/$ exchange rate at 1.45. In particular, the supply of shredded scrap and superior qualities is reported to be weak in Europe. The price difference between shredded scrap and the HMS I/II 80:20 is now greater than $5/mt.
 
The  A3 grade scrap price ex-Black Sea has moved up as well. Romanian A3 grade scrap, which had fallen as low as $415/mt CFR levels, has now recovered to reach $425/mt CFR. The new offers are heard by SteelOrbis to be in the range $430-435/mt CFR. The booking level for A3 grade scrap ex-Russia has reached $430/mt CFR.
 
The drop recently recorded in scrap prices has negatively influenced Turkey's finished steel exports. Turkish producers who believe the finished steel product prices should not fall further are striving to revive the demand on this side of the market. The slight uptrend of scrap prices also aids in this endeavour. However, if the expected revival fails to be triggered for finished steel, Turkish producers will have to reduce their scrap demand and this may block the increase of scrap prices.