While demand in the import scrap market in Turkey had increased last week with scrap prices moving up to $335/mt CFR, it is observed that in the current week scrap suppliers have increased their offers to Turkey as compared to the levels recorded in the most recent deal. Deep sea scrap suppliers are testing the level of $340/mt CFR for HMS I/II 80:20 scrap in their new offers, while some Turkish mills seeking to conclude import scrap purchases consider this level to be on the high side as they think the prices recorded last week are the highest levels that can be accepted. Last week, HMS I/II 80:20 scrap prices in ex-Baltic and ex-UK deals in Turkey had reached $335/mt CFR, while ex-US HMS I/II 80:20 scrap was at $334/mt CFR.
As the capacity utilization rates of the US-based electric arc furnaces have exceeded 85 percent, domestic scrap prices in the US are expected to increase further in November. Meanwhile, lower water levels in European rivers have negatively impacted scrap shipments, resulting in increased logistic costs. Although domestic scrap demand in Europe has maintained its strength, the problems regarding shipments have caused a fall in plants’ scrap inventories. A similar problem is experienced in Russia, preventing Russian A3 grade scrap prices from declining to the levels Turkish mills seek. Currently, Russian A3 grade scrap prices to Turkey are at $325/mt CFR, while offers for the same grade from Romania and Bulgaria to Turkey are standing at $320/mt CFR.