Last week, Turkish steel producers have concluded several ex-deep sea scrap bookings, as already reported in SteelOrbis Steel Prices. With scrap prices remaining almost in same levels in previous weeks, scrap prices have maintained stability.
In last week's Turkish market, transaction price of ex-US HMS I/II 80:20 scrap was at $469/mt CFR, while the transaction price for shredded scrap was at $474/mt CFR. While there has not been any ex-US scrap transaction heard so far this week in Turkey, offer price for HMS I/II 80:20 scrap is expected to stand at about $475-480/mt CFR.
Ex-Europe HMS I/II 80:20 scrap price for Turkey is at $465/mt CFR. Showing strong volatility for a while, the €/$ exchange rate again indicates downwards and the weaker euro raises expectations for a decline in ex-Europe scrap prices. Nevertheless, ex-Europe scrap prices have not shown any decrease in last week's transactions and offers.
Last week, some ex-Black Sea A3 scrap bookings have been concluded at $455-460/mt CFR in Turkey. And this week, SteelOrbis has learned from market sources that ex-Black Sea A3 scrap offers are at $460/mt CFR Marmara Sea ports and $465/mt CFR Nemrut port, Izmir.
In the Turkish domestic market, both finished steel sales and prices have increased, and the price gap between sales prices for the domestic market and export markets have widened significantly. If finished steel demand coming from foreign markets also rises, it is thought that Turkish steel mills' scrap demand may increase accordingly. However, if finished steel demand from export markets shows no improvement, then Turkish mills will likely to continue their scrap bookings within the scope of their needs, though not intensively and scrap prices are seen to trend sideways in this case.