Scrap supply indicates strength after Easter break

Tuesday, 26 April 2011 17:03:19 (GMT+3)   |  
       

No scrap offers have been heard yet in Turkey from European and US scrap suppliers, who have just returned from their Easter holiday.
 
For the last couple of weeks, Turkish steel producers were actively booking scrap cargoes, and are known to be still in the market searching for price indications. An increase in the Turkish domestic market in terms of steel mills' scrap purchase prices has also been observed.
 
Among the ex-US scrap bookings concluded last week, price levels were observed to move upwards slightly from their early week level of $445/mt to  $447/mt CFR. However, a booking of HMS I/II 80:20 has been heard at $445/mt CFR, though thanks to the discharge rate of 15,000 mt/day guaranteed by the buyer. In the meantime, in the latest transaction heard in Turkey, ex-US HMS I/II 80:20 scrap was priced at $449/mt CFR.
 
 As for European origin material, HMS I/II 80:20 was booked at $442/mt CFR and HMS I/II 70:30 was booked at $428/mt CFR Turkey. The recent fluctuations of the euro/US dollar exchange rate is putting a considerable amount of pressure on scrap suppliers ex-Europe.
 
Last week, price levels for scrap ex-Black Sea moved up. Price levels of A3 grade scrap moved up from the previous week's level of $420/mt CFR to $435/mt CFR. As of today, there are offers heard at $440/mt CFR levels, while no booking has yet been confirmed at any level above $435/mt CFR.
 
Turkish producers are expected to continue purchasing scrap this week, while prices tend to maintain their existing levels, without moving up significantly. The supply side is stong, though demand from net importer markets such as the Far East is not so active. On the other hand, the US domestic market is expected to see a softening of scrap prices in May.

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