It is observed that Turkish steel producers have continued to purchase scrap over the past week in spite of the increased prices; however, they have preferred to buy ex-Europe scrap due to the price advantage based on a favorable exchange rate.
In ex-Europe scrap bookings over the past week, HMS I/II 70:30 scrap prices have been at $378/mt CFR, while HMS I/II 80:20 prices have been at $395/mt CFR. As for ex-US scrap bookings heard, HMS I/II prices are seen to be standing above the level of $400/mt CFR. In one transaction concluded toward the end of the week, ex-US HMS I/II 80:20 scrap was heard to be booked at a level close to $405/mt CFR. With US domestic scrap prices thought likely to increase in September, ex-US scrap offer levels for Turkey are also expected to rise.
Ex-Black Sea A3 grade scrap is currently being offered at about $400/mt CFR. However, there have not been any bookings confirmed at this price level, since producers have difficulty in accepting it.
Since there have not been any bookings for October, it is thought that Turkish mills will be in the market in September and will then complete cargo bookings for shipments in October.