Having bought approximately 1.5 million mt of scrap within a short space of time i.e. two weeks, and thereby provided a certain amount of relief for their previously low stock levels, the Turkish producers have been taking a bit of a breather again since the middle of last week.
Recently heard ex-US scrap bookings for HMS I/II 80:20 have been concluded at the level of $278/mt CFR Turkey. As of today, offer prices for scrap are conserving their levels, hovering in the range of $280/mt CFR. However, it is observed that no great interest is being shown in these offers from the Turkish producers. In addition, ex-Europe HMS I/II 70:30 scrap, which had found some buyers in recent weeks at the price level of $263/mt CFR, has this week been offered at $265/mt CFR. However, the material at this price has not yet attracted any buyers.
On the other hand, although ex-Black Sea A3 grade scrap offers are standing at $290/mt CFR, the Turkish producers have not been expressing any interest in this price level.
It seems that Turkish producers are currently taking a break from their scrap purchases, but have been focusing on selling finished products instead. If finished products sales go well for them, then their production will continue and demand for scrap will reawaken. It should be said that the producers' latest purchases have helped them to fill up holes in their scrap stocks. Taking into consideration the possible difficulties in scrap transport due to the upcoming winter season and also the one-week religious holiday in early December in Turkey followed by the Christmas and New Year holidays, the Turkish producers, who are expected to continue their production, are thought likely to return to the market in order to buy scrap for their future stocks.