Slack activity in scrap markets

Scrap bookings by Turkish mills are few and far between since scrap offer prices are higher than their expectations. Reduced scrap availability in Turkey's major scrap import sources such as the US and Europe amid the summer holidays and the hot weather has resulted in increased offer price levels.
  
In an ex-US scrap cargo transaction to Turkey via a trader reported by SteelOrbis, the price level was significantly below other suppliers' prices. Currently, ex-US HMS I/II 80:20 offers to Turkey are standing at $410-420/mt CFR, though these offers have failed to gain acceptance among Turkish mills so far given current market conditions, since Turkish mills' price idea for ex-US HMS I/II 80:20 does not exceed $390-395/mt CFR.
 
On the other hand, Turkish mills have concluded several ex-Europe HMS I/II 70:30 scrap bookings at $360-365/mt CFR and current scrap offer price levels are standing above this price range. In the meantime, it is rumored that a Turkish mill has concluded a transaction for an ex-Europe HMS I/II 70:30 scrap cargo at $370/mt CFR, though this transaction has not been confirmed yet.
 
In the Black Sea region, current transaction prices for ex-Russia A3 scrap to Turkey are at $380/mt CFR. However, SteelOrbis has learned from market sources that, although Turkish mills are not satisfied with the quality of material in these purchases, they are opting for ex-Russia scrap as they can buy scrap in smaller volumes.
 
Turkish mills' scrap booking activity has been very sluggish lately with scrap price levels remaining fairly high when semi-finished, finished steel and pig iron and iron ore prices are considered.