Turkish producers, having long postponed their scrap purchases, are now facing a variety of prices depending on the suppliers' particular situations.
In particular, ex-Europe HMS I/II 70:30 scrap sales have been gaining in importance recently, with prices registering a rapid decline as a result of the fierce competition between suppliers of this scrap category. As ex-Europe scrap suppliers have been enjoying a greater advantage due to the recent drop in the $/TRY exchange rate, it is estimated that there might be offers even below the level of $420/mt CFR for HMS I/II 70:30 scrap in parallel with the suppliers' strategy. Meanwhile, it is also heard that scrap collection prices have indicated an increase in the European domestic market this week.
The case with the ex-US scrap suppliers is a bit different. As these suppliers cannot lower their offers to levels that would satisfy the expectations of Turkish producers, the offers for ex-US scrap in the Turkish market are very limited. With re-stabilization of freight rates beginning to be observed, the prices for ex-US HMS I/II 80:20 scrap are around the level of $440-445/mt CFR Turkish ports, whereas Turkish producers are willing to pay around $435/mt CFR Turkish ports. Ex-US suppliers, who expect that the Far Eastern market will gain momentum with the conclusion of the Chinese Lunar Year holiday tomorrow, are for now refusing to lower their offers to the levels proposed by the Turkish mills. On the other hand, the freight rates from US East Coast ports to Turkish ports, which even fell below $60/mt from the level of $90/mt, are expected to rebound again. However, the critical role in the US is being played by the supplier's position and strategy, just like the situation in the UK.
It is possible to say the same for the Black Sea region. While suppliers that had previously taken position can lower their offers below the level of $430/mt CFR, other suppliers are giving offers at higher levels.
Despite all this uncertainty, taking into consideration the strength of the longs market, it is expected that Turkish mills, who have long been delaying their scrap purchases, will soon resume their buying activity.