Upward trend continues in Turkish scrap market

Tuesday, 30 October 2007 18:01:03 (GMT+3)   |  
Prices in the Turkish scrap market have reached unexpectedly high levels. The continuity of the incredible upward trend in freight rates and the elevated levels freight rates have already reached have left no alternative for Turkish mills but to accept scrap prices. In the bookings concluded last weekend, the price of HMS I/II 80:20 scrap ex-deep sea touched the level of $350/mt CIF. Meanwhile, another cargo ex-deep sea (Canada), composed of 20,000 mts of shredded scrap, 20,000 mt of HMS I scrap and 5,000 mts of bonus grade scrap, was concluded at the level of $360.50 mt CIF.

The same situation applies for the Black Sea region. In the bookings concluded towards the end of last week, A3 grade scrap ex-Black Sea was purchased by Turkish mills in the price range of $350-355 mt CIF.

Although scrap inventories in Europe are reported to be high, the fact that the €/$ exchange rate is quite strong, added to the rising freight rates, has not allowed any softening in the prices of scrap ex-Europe.

The price level the mills will accept to pay for scrap varies according to their stock levels. Meanwhile, the Turkish mills which are due to conclude scrap bookings this week are expected to pay around $350-355/mt CIF for HMS I/II 80:20 scrap ex-deep sea, which may also vary according to the discharge rate.


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