Turkish mills’ scrap bookings remain limited

Turkish mills' scrap bookings have been limited in the past week, as they have been unable to receive offers as low as their expectations. SteelOrbis has learned from market sources that a Turkish mill has canceled a scrap purchase tender it opened last week, citing that incoming bids were unable to meet its expectations. This producer is reported to be reopening its tender this week, accepting new bids.
 
It is observed that ex-US scrap suppliers have not reduced their scrap price offers to Turkey but are still insisting on prices at $370/mt CFR and above levels for HMS I/II 80:20. As ex-US scrap suppliers have almost completed their scrap sales for October and as only a few scrap cargos remain to be sold in the given month, these suppliers are not in a rush to cut their prices before scrap prices in the US domestic market are settled for November, SteelOrbis understands. Consequently, scrap prices as low as last week's $365-367/mt CFR Turkey are not expected nowadays.
 
Regarding ex-Europe scrap, some bookings were concluded last week, as already reported by SteelOrbis. However, as the euro has strengthened against the US dollar, with the exchange rate reaching 1.31 as of today, October 17, ex-Europe scrap suppliers are now under increased pressure and they are expected to avoid concluding new sales at last week's price levels. Yesterday, October 16, an ex-Lithuania scrap cargo sale to Turkey was heard, with the price of about 17,000 mt of HMS I/II 90:10 standing at $372/mt CFR.
 
Turning to the Black Sea market, ex-Russia scrap suppliers in particular are having difficulties in moving their prices down to the levels desired by Turkish mills. Although the latest ex-Russia A3 scrap booking to Turkey was concluded at $354/mt CFR Marmara Sea ports, it is now observed that most suppliers are unable to give offers as low as this. For ex-Romania A3 scrap, on the other hand, prices are heard to be hovering at about $355/mt CFR. In October, Turkish mills' ex-Black Sea scrap booking volume has declined, resulting in a significant drop in the A3 scrap transaction volume.