For a long time the Turkish mills were able to get along with the scrap they purchased from the local market in addition to Black Sea scrap and small quantities of ex-Mediterranean scrap, delaying their purchases for deep sea scrap.
Under the effect of the weak state of the longs market, the Turkish mills, who have been acting prudently in their scrap buying activity, are expected to soon resume their deep sea scrap purchases for late July/early August loadings. The significant decline in the supply of Black Sea scrap is the major factor supporting this expectation.
There were bookings concluded at $311-314/mt CFR for Black Sea scrap last week. We see that these prices have also been maintained this week. The latest scrap booking ex-Romania has been concluded at $314/mt CFR Nemrut level.
With regard to deep sea scrap, it is heard that the offers for shredded scrap are at around $333/mt CFR, while offers for HMS I/II 80:20 are at around $328/mt CFR. Last week it was heard that a US scrap supplier had offered scrap at a price considerably lower than this level. With regard to the deep sea scrap market, where different price expectations have emerged, the actual price will be determined by the first booking to be concluded. If any price decline is seen in deep sea scrap bookings, an expectation of lower prices with respect to Black Sea scrap may emerge among the Turkish mills.