Ferrous scrap prices into Turkey shot up again this week as mills there booked more cargoes ahead of Ramadan, which is set to begin on August 11, market participants said.
Turkish buyers booked deep-sea cargoes from Europe and the US, paying $15-20 per tonne more than the deals they sealed last week.
One US-origin cargo of mixed shredded and HMS 1&2 (80:20 mix) material sold at $361 per tonne cfr Turkey.
Another deep-sea cargo from a recycler in northern Europe sold for $364.5 on the same terms. This parcel comprised 24,000 tonnes of shredded material and 10,000 tonnes of HMS 1&2 (80:20).
Last week a cargo of shredded material sold at $348.5.
The sharp price rise came as a surprise to many merchants, they said.
“It’s crazy,” said one. “I don’t understand why the Turkish are paying these levels, they are not competing with anyone.”
Most European mills are operating at low levels of capacity utilisation and the Asian market is quiet.
“Now in India they will have to pay over $400-410 per tonne cfr,” another merchant said. “I know for sure most Turkish mills are still losing money but they keep going.”
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