No deep sea but only a few ex-Black Sea scrap bookings have been heard in the Turkish scrap market as the Turkish steel producers have opted to delay their scrap purchases over the last three weeks.
The last deep sea scrap booking to Turkey was made at $324/mt CFR for HMS I/II 80/20, and no lower offer has been heard since then.
The supply of cut grade scrap in the US domestic market is quite low, and US scrap prices in September have risen again. These two facts prevent ex-US scrap prices from softening in the Turkish market.
In Europe, steel producers are left in a difficult situation as they have to make scrap purchases for re-stocking purposes in the post-holiday period, during which prices have increased. The uncertainty and worry in the market continues to overwhelm the steel producers.
Suppliers of ex-Black Sea scrap are observed to have decreased their prices, as demand from Turkey has softened. A3 scrap, which was at $317/mt CFR two weeks ago, is offered at $310-315/mt CFR this week. The last bookings heard point to prices of $310/mt CFR Marmara for A3 grade ex-Ukraine and $311/mt CFR Marmara for A3 grade ex-Romania. It is heard that Russian suppliers are offering A3 grade at slightly higher numbers.
Turkish producers are expected to effect scrap purchases prior to the end-of-Ramadan holidays, due to their stock levels. If they delay their purchases until after the holidays, then the demand from the Far Eastern steel producers will set the level of scrap prices.