Though the Turkish mills were active in import scrap purchases last week, it is heard that they are in the market this week also and that there is a strong demand for scrap. However, despite the strong scrap demand in question, it is observed that scrap suppliers are not in a hurry for sales and that they are tending to withdraw offers. In particular, no supplier has given an offer for January shipment yet. The main reason for this is that the suppliers are eager to avoid freight risks, given the continuously increasing freight rates. On the other hand, they are observing the course of the longs market as well as the scrap market.
Last week, when signs of strong booking activity were evident, the prices for HMS I/II 80:20 scrap found buyers at a range of $349-351/mt CFR, whereas shredded scrap went for $354/mt CFR. This week, on the other hand, it is heard that HMS I/II 80:20 scrap is being offered above the level of $355/mt CFR, while shredded scrap is being offered above the level of $360/mt CFR.
It is reported that Turkish mills are very interested in A3 grade scrap ex-Black Sea in particular. Knowing that deliveries from the region in question will get much more difficult as weather conditions deteriorate with the arrival of winter, Turkish mills are already rushing to ensure their scrap bookings from the region. Therefore, A3 grade scrap, which was traded in a range of $345-350/mt CFR last week, is being offered at the level of $355-360/mt CFR this week. It is apparent that A3 grade scrap imports, which have been declining day by day since 2006, will see a further decrease with the commissioning of new investments in Russia. It is even though likely that Russia will become a net importer of scrap from being a net exporter.
Many reports of scrap bookings are expected to be heard towards the end of this week from Turkish scrap market, which has just started to gain momentum.