Turkish scrap import prices remain stable after holiday

During the one-week-long Ramadan holiday last week, Turkish mills concluded some scrap bookings, with prices remaining at previous levels in these bookings.
 
In the bookings in question, mostly ex-Europe, a single cargo of 21,000 mt of HMS I/II 70:30 scrap was priced at $441/mt CFR Turkey, while another scrap transaction of a mixed cargo including 27,000 mt of HMS I/II 75:25 scrap and 3,000 mt of bonus grade scrap was concluded at $444/mt CFR Turkey.
 
In the past week, Turkish mills have not concluded any ex-US scrap bookings. In the meantime, domestic scrap prices in the US for September are strongly expected to remain at price levels effective for August. However, SteelOrbis has also been informed that some regions in the US may see a slight increase in scrap prices. Although there has not been any ex-US scrap offer heard in Turkey so far, ex-US HMS I/II 80:20 offers for Turkey are expected to stand at $470-475/mt CFR.
 
Ex-Black Sea scrap prices vary depending on their origin. In Romania, scrap collection prices have reached $430-435/mt. Considering these collection prices, ex-Romania A3 scrap offers are not likely to remain below $470/mt CFR. However, Turkish mills are not expected to accept the price level of $470/mt CFR for A3 scrap. On the other hand, ex-Russia A3 scrap offers to Turkey are at $455-460/mt CFR. As for ex-Baltic scrap, during the Ramadan holiday a cargo consisting of HMS I/II 80:20 scrap and shredded scrap was transacted at $469/mt CFR Turkey.
 
The scrap market was expected to revive in September, after the Ramadan and summer holidays. However, uncertainties in the financial markets still prevail. If finished steel demand improves in September as anticipated, it is thought that Turkish mills will continue their scrap bookings. For now, since the markets have yet to gain clarity, Turkish mills are assessing scrap import offers, but they are not making aggressive scrap purchases for the time being.