Turkish scrap market this week

A few scrap bookings were heard in last week's Turkish scrap market - a market which did not show great signs of activity during the week in question. The price levels in these bookings were as follows:

While the price of scrap offered last week was a bit higher than these levels, the high discharge rates given by the Turkish mills caused the prices to decrease to the above-mentioned levels. Recently, with freight rates having such an influence on scrap prices, the discharge rates given by the mills have been playing a significant role. The difference of a 2,000 mt discharge rate provides an advantage of about $2-3/mt in prices. In this week's offer levels in the scrap market, no decrease has been seen due to the high prices paid for freight, despite the drop in the FOB based prices:

As we have mentioned above, the price level the mills will accept to pay for scrap varies according to the discharge rate.

The price of scrap ex-Europe mainly relies on the €/$ exchange rate, which has increased considerably. As a result of the euro's appreciation against the US dollar, added to the rising freight rates, ex-Europe scrap suppliers are even incapable of making offers for export.  Reports that prices in the European domestic market have decreased by an average of €10/mt today will boost the activity of ex-Europe scrap suppliers in the Turkish market.

With different prices being heard in ex-Black Sea A3 grade scrap bookings according to the seller's stock levels, the price level for Marmara ports stands at the level of $348/mt CIF, whereas the price level for Nemrut ports stands at the level of $352/ mt CIF.

With regard to small tonnage scrap, the price of Algerian origin scrap is at a level of around $330/mt CIF, whereas the price of Israeli origin scrap is at a level of around $322/mt CIF.

It is heard that Turkish mills are currently active in scrap purchases, and more bookings are expected to be concluded in the Turkish markets this week.