As a result of the high demand for scrap in the US domestic market, which is a major scrap supplier, scrap has made a vibrant entry into 2008 in the US. There is an expectation that scrap prices in the US domestic market, which have already risen considerably, will soar further. With no booking heard to have been concluded in the Turkish market this week, possible offers are expected to be much higher and to start from the following levels:
Ex-deep sea HMS I/II 80:20 scrap |
$460/mt CFR |
Ex-deep sea shredded scrap |
$465/mt CFR |
Ex-deep sea P&S scrap |
$470/mt CFR |
With regard to the Black Sea region, harsh winter conditions are showing their effect and previously booked cargoes cannot be delivered. In the middle of last week, an A3 grade scrap booking (St. Petersburg loading) was concluded at the level of $458/mt CFR. If the weather conditions go on like this, possible offers are expected to stand at the abovementioned levels, although not many offers are thought likely to come from the Black Sea region.
It is foreseen that 2008 will be a robust one as a result of iron ore contracts being concluded at high prices, based on current raw material prices.