Turkish mills’ scrap bookings slow down

After their intensive scrap bookings of previous weeks, Turkish mills have slowed down their scrap purchases in the past week.
 
Only a single ex-US scrap transaction is reported to have been concluded in Turkey last week. In this booking by an integrated steelmaker, the price of the cargo composed of 25,000 mt of HMS I/II 80:20 scrap and 15,000 mt of P&S scrap was at $474/mt CFR. While no offers have been heard for HMS I/II 80:20 scrap so far this week, SteelOrbis has heard that the US suppliers will not give prices under $460/mt CFR.
 
It is reported that currently there is no shortage in ex-Europe scrap supply; however, suppliers in Europe are waiting for Turkish mills to start their purchases. The depreciation of the euro against the US dollar has increased European suppliers' sales potential.
 
Ex-Black Sea scrap prices are tending to move in a downward direction. Although scrap collection prices in Romania are at $415-418/mt, some suppliers are offering A3 scrap to Turkey at $445/mt CFR. While an ex-Romania scrap transaction has been concluded at $442/mt CFR Marmara Sea port, SteelOrbis has learned from market players that Turkish mills' current price idea stands at $440/mt CFR.
 
The improved weather conditions as well as the weakening of the euro against the US dollar have cleared the way for a certain decline in prices. However, if demand from global steelmakers, who have not commenced the current week with strong demand, shows an improvement by the middle of the week, deals may be concluded at current price levels.