Having abstained from scrap purchases for a long time, Turkish producers have returned to the market again in the past week as expected and have concluded scrap purchases. It is observed that scrap prices have increased to some extent as a result of higher demand.
Ex-US cargoes consisting of HMS I/II 80:20 and shredded scrap were booked at the levels of $300-305/mt CFR in the first few days after Turkish producers resumed their scrap purchases. With the increased demand, prices of ex-US scrap cargoes consisting of HMS I/II 80:20, shredded scrap and PNS grade scrap have since increased to the level of $318/mt CFR.
Ex-Europe transactions heard have also indicated some improvement, in line with the trend of ex-US scrap prices. In many bookings concluded, ex-Europe HMS I/II 80:20 has been transacted at the level of $315/mt CFR, with shredded scrap transacted at $320/mt CFR.
After decreasing to $285/mt CFR, ex-Black Sea A3 scrap prices have again started to increase following the rise in demand and the trend of ex-US and ex-Europe scrap prices. Ex-Black Sea offer levels have increased to as much as $315/mt CFR; however, transactions have mainly been concluded at levels of $305-310/mt CFR. Scrap collecting prices in Romania have also shown an increase, rising to $275/mt. Recent offers for ex-Black Sea scrap are heard to be standing in the range of $305-310/mt CFR, though Turkish producers do not hold a positive view of these offers as they have already gained some relief in terms of their scrap stock levels.
Having booked scrap at increased prices, the Turkish producers have reflected the increase in their steel product prices. Since it is still not certain to what extent these higher price levels will be accepted in the finished product markets where current demand is quiet, Turkish producers are expected to suspend their scrap purchases until the finished product situation gains clarity, especially as they are more comfortable now with the levels of their scrap stocks.