Due to the rise in the scrap prices, which reached $45/mt, marking the historically rapid rise, Turkish mills worked during the Eid-al-Adha as well, trying to purchase as much as scrap they could find. The fact that ex-US and ex-Europe scrap suppliers may not offer scrap to the market this week due to Christmas holiday stood as another factor that caused Turkish mills to work during religious holiday.
The price levels in the ex-deep sea scrap bookings, where an increase was observed even during the period between the beginning and the end of last week, are as follows:
Ex-deep sea P&S scrap |
$414-421/mt CFR |
Ex-deep sea HMS I/II 80:20 scrap |
$406.5-415/mt CFR |
Ex-deep sea HMS I/II 70:30 scrap |
$394-395/mt CFR |
Although Turkish mills are active in scrap purchases this week, it is estimated that not many offers will be heard from the suppliers till December 27 due to Christmas holiday. The latest offer heard to have been given by a European supplier for shredded scrap was at the level of $430.50/mt CFR Nemrut. The new levels in the price offers, which are expected to mark a slight increase over the last week, are estimated to be as follows:
Ex-deep sea shredded scrap |
$425-430/mt CFR |
Ex-deep sea HMS I/II 80:20 scrap |
$420-425/mt CFR |
The same situation applies for Black Sea. Without many offers available, it is heard that there were problems in the deliveries of the previously booked materials. It is estimated that this week A3 grade scrap will be offered to Turkish mills in the range of $420-425/mt CFR.
Even though winter conditions are just starting to show their effect on scrap market, scrap prices have already increased dramatically, meaning that a drop should not be expected in a short term as hasher winter conditions are yet to come.