As we are heading towards the end of 2009, with the countdown for the new year has already started, scrap markets are observed to be in a tranquil state. As both scrap suppliers and buyers are retiring into their shells, neither any inquiries nor any offers are heard in the market.
Steel producers believe that current numbers are well below their acceptable price levels to conclude any bookings, while scrap suppliers are aware that their offer levels are well above the buyers' price ideas. Hence not much of an activity can be observed in the market, nowadays.
For a certain while, no booking of ex-US scrap has been heard. Over the last week, bookings ex Europe of HMS I/II 70:30 at the level of $310/mt CFR, HMS I/II at $314/mt CFR and shredded scrap at the level of $317/mt CFR were effected.
Ex-Black Sea A3 scrap has no situation different from the others. Price level of ex-Russia A3 scrap, which has further dropped in 2009 in terms of shipments, is way higher than counter offers by the Turkish steel producers. In Romania collecting prices are in the range of 285-288 $/mt.
Along with the still ongoing holidays, the uncertainty in the product markets is also pushing the steel producers away from the scrap markets this week. Everybody is wishing for the revival of demand at the products end, as the New Year commences.