Having completed approximately 27 bookings for scrap ex-deep sea for September shipments since the beginning of August, Turkish mills are no longer in a hurry to conclude new bookings, since their scrap inventories are now in a good state.
Having concluded a number of bookings over the last two weeks, Turkish mills seem to have slowed down their purchases this week. In the latest scrap booking concluded from the US towards the end of last week, HMS I/II 80:20 was purchased at $343.50/mt CFR, while P&S scrap was bought at $353.50/mt CFR Turkey. Although Turkish mills, following these dense bookings, expect prices to slacken, it seems that there will not be a serious fall for now. The reason for this is that local scrap prices in the US, which have already reached high levels, are expected to rise by another $10-15/mt in September. On the other hand, freight rates still hover at elevated levels. Prices are foreseen to maintain their current levels for a while, with price expectations being as follows:
P&S ex-deep sea |
$350-355/mt CFR Turkey |
Shredded scrap ex-deep sea |
$345-350/mt CFR Turkey |
HMS I/II 80:20 ex-deep sea |
$340-345/mt CFR Turkey |
Still, if we take Europe into account with respect to deep sea scrap supplies, it may be useful to note that there is also a slackening in this region, and that buyers may persuade sellers to accept lower prices for small-tonnage cargoes.
In the last two weeks, the situation as regards Black Sea scrap, the price of which has increased up to $348/mt CFR Nemrut, is a bit different. Relieved with the bookings they concluded from deep sea, Turkish mills are now putting pressure on A3 scrap prices ex-Black Sea. In the latest booking heard, the price level declined to a level of $340/mt CFR. It is also observed that Turkish mills are putting pressure on Black Sea scrap suppliers to lower their prices to a level of $330/mt CFR and that they are even pushing for prices lower than this level depending on the situation.
It is also heard that offer levels of suppliers of small-tonnage Algerian and Israeli scrap are at $320-330/mt CFR; however, Turkish mills are not interested in these offers.