Turkish mills still delay scrap bookings despite built-up demand

In the Turkish import scrap market, where very few transactions have been heard lately, although scrap demand is increasing day by day Turkish mills are still delaying their scrap bookings, as the expected revival in the finished steel market has failed to materialize. Considering that May scrap orders are still below the normal required volumes, while scrap orders also need to be concluded for June, it thought that Turkish mills need to order about 35 more ex-deep sea scrap cargos.
 
Despite the tepid demand, no softening has been observed in ex-US scrap prices. After the latest scrap booking reported by SteelOrbis, it is seen that other US scrap suppliers are unable to offer such price levels, while the mainstream price level for ex-US HMS I/II 80:20 is still at about $450-455/mt CFR. SteelOrbis has learned from market sources that there is no supply shortage for scrap from Europe or the US and that there are scrap offers from many suppliers available in the market.
 
Suppliers of ex-Black Sea scrap have become more aggressive recently and scrap offers from this region have indicated a softening. Scrap collection prices in Romania are currently standing at $395-400/mt, while ex-Romania A3 scrap offers to Turkey are at about $430-435/mt CFR and ex-Russia A3 offers are at $435-440/mt CFR Turkey. However, actual transactions may be below these offer levels.