Turkish scrap market

The silence in the Turkish scrap market is expected to be broken either by the producers or by the suppliers soon. With the uncertainty, emerged out of this silence, there are lots of speculations about the price levels. Further drop is seen on the offers for small quantity A3 scrap ex-Black Sea. Although for small tonnages, there are bookings only from this region. As of today, price level of around $255/mt CFR is heard for scrap offers ex-Black Sea for small tonnages and the price level goes up to $275/mt CFR for large tonnages. The reason for this difference is that certain suppliers, in need of closing their positions, cut prices; on the other hand, current prices in Russian local market indicate increase raising the expectations for large export quantities along. On the other hand, Turkish mills do not show much interest to deep sea cargoes ex-Europe and ex-US for large tonnages. Price offers ex-these regions indicate a decline compared to previous weeks. Latest booking of a scrap cargo composed of 13,000 mts of shredded scrap, 13,000 mts of HMS I/II 80:20 scrap and 4,000 mts of P&S scrap ex-US has been concluded at $272/mt CFR by a Turkish mill, which indicates a huge decrease compared to previous weeks. However, believing that the general price level has not fallen to this level, we forecast that price level for HMS I/II 80:20 this week will be in $270-275/mt CFR Turkish ports range. Another supplier has offered HMS I/II 60:40 scrap at $257/mt CFR Turkish ports. In the offers for scrap cargoes ex-Europe, Euro/US Dollar exchange rate will play an important role. In Turkish scrap market, where prices vary and only special bookings are concluded, we think that a few bookings for deep sea scrap will be concluded as of this week. We believe that the actual market level will emerge with the conclusion of these bookings.