Scrap trade suspended with Christmas

Tuesday, 27 December 2011 17:29:43 (GMT+3)   |  
After remaining quiet last week, Turkish steel mills returned back to the scrap market suddenly at the weekend, just before the Christmas holiday to conclude scrap bookings. The return of Turkish mills to the market, at the point when scrap prices have started to indicate softening, caused scrap prices to continue strengthening.

Towards the end of last week, a Canadian mixed scrap cargo, composed of HMS I/II 90:10, shredded scrap and P&S scrap had been offered to Turkish mills at $465/mt CFR. Believing that prices would move down after a couple of silent days Turkish mills showed no interest in this offer. However, when these producers returned back to the market before the Christmas holiday, the supplier had already pulled back its offer. In Turkish mills' ex-US scrap bookings, price of HMS I/II 80:20 was at $460/mt CFR, while the price of shredded scrap was at $465/mt CFR. In the meantime, transaction prices of ex-UK HMS I/II 80:20 scrap stood at $455/mt CFR.

It is thought that Turkish mills would seek to continue their scrap bookings this week, once suppliers return from the Christmas holiday.


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