In the Turkish scrap market, where doing business is getting increasingly hard in the context of the rising prices, both the local and the import prices for scrap continue to soar. As every new booking is concluded at the higher level than the previous one, scrap suppliers are having difficulty in making price offers. Since the worldwide scrap supply cannot satisfy the demand for the raw material in question, the prices are not expected to indicate a drop in the short term. In addition to the imbalance in supply and demand, rising depreciation of the US dollar against Euro as well as the recent extraordinary hike in the longs and billet prices have contributed to the increase in scrap prices.
In the latest scrap booking ex-US made towards the end of last week in the Turkish market HMS I/II 80:20 scrap was concluded at the level of $523/mt CFR, shredded scrap at $528/mt CFR and P&S scrap at $533/mt CFR. With a limited number of offers heard in the market so far this week, it is estimated that the prices will stand at higher levels than the abovementioned prices. The suppliers are not giving export offers for May shipments before the prices in the European and the US domestic markets are determined for April. Meanwhile, the prices are expected to move up slightly during the month of April in the European and the US domestic markets.
Far Eastern mills, who resumed their scrap purchases, last week, booked three scrap cargoes ex-US West Coast. The price level in these bookings was around $580/mt CFR Korea.
As regards the A3 grade scrap ex-Black Sea, there are offers around $550/mt CFR for the Turkish market. Looking into the bookings, it is seen that the levels acceptable for the Turkish mills stand at the levels of $525/mt CFR Marmara and $528/530/mt CFR Nemrut.