Turkish producers, who as of the past week have recommenced scrap purchases due to the low levels of their stocks, have been obliged to accept the increasing prices in the scrap market.
While scrap prices in the US domestic market are on a downtrend due to low demand levels, export scrap prices from the US have increased thanks to solid demand for scrap from the overseas markets. US export scrap prices have increased by approximately by $30/mt in the last two weeks on the back of the strong demand from Turkish producers as well as the ongoing lively demand from the Far Eastern producers (who previously paid over $320/mt CFR). Turkish producers have concluded approximately fifteen ex-deep sea scrap deals in this two-week period. While HMS I/II 80:20 scrap was bought at $285/mt CFR Turkey last week, offers have this week been at $290-293/mt CFR. Meanwhile, shredded scrap offers to Turkey have been close to the level of $300/mt CFR Turkey.
On the other hand, ex-Europe HMS I/II 70:30 prices have increased in line with the uptrend in scrap demand, rising to the level of $285/mt CFR Turkey.
In Romania, meanwhile, scrap collecting costs have suddenly increased to around $275/mt. It is heard that scrap collected at this price level may be sold to Turkey for at least $300/mt CFR Turkey; however, it is thought that the Turkish producers will find it difficult to accept this price level.
Coming after a very sluggish period, it cannot be predicted how long and how far scrap prices will continue to increase. At the same time, the finished steel product markets in general do not support this current uptrend in scrap prices.