In last week's Turkish scrap market, where rapid increases were observed and scrap prices exceeded the level of $500/mt for the first time ever, various bookings for April shipment were heard. It was always going to be highly unlikely that Turkish market scrap prices would fail to indicate a strong rise, given that billet and longs prices in the Turkish market had reached incredible levels. Indeed, we had reported in last week's scrap market analysis entitled "Full steam ahead for the Turkish scrap market" that we expected scrap prices to exceed the level of $500/mt. The price levels in the Turkish scrap market, where many booking reports were heard even during the weekend, are as follows:
Ex-deep sea P&S scrap |
$517/mt CFR Turkey |
Ex-deep sea shredded scrap |
$513/mt CFR Turkey |
Ex-deep sea HMS I/II 80:20 scrap |
$508/mt CFR Turkey |
Ex-deep sea HMS I/II 70:30 scrap |
$482/mt CFR Turkey |
Ex-Baltic A3 grade scrap |
$525/mt CFR Turkey |
The levels in yesterday's ex-deep sea bookings were in line with the abovementioned levels. While Turkish mills have obtained great relief in their scrap purchases for April shipments, the Far Eastern mills, which were unable to conclude bookings last week due to the activities of the Turkish mills, are expected to be active in scrap purchases this week.
Last week, as regards ex-Black Sea A3 grade scrap, bookings concluded at the level of $500/mt CFR were heard. Turning to the current week, it is estimated that offer prices will vary in a range of $500-510/mt CFR, with no booking ex-Black Sea having been heard so far.
The price level of another booking concluded at the weekend was a source of no little amazement in the market. 35,000 mts of bonus grade scrap ex-UK were booked by a Turkish mill at the level of $550/mt CFR for April shipment. As overall market prices have not soared to the level in question, this booking gave rise to some skepticism in the market; however, the level has since been confirmed both by the buyer and by the seller.