Falling raw material demand in Turkey has
reduced the scrap buying prices. Few cargoes from from Deep Sea region were heard
being sold at lower prices.
Turkish mills bought several deep-sea cargoes
last week.
US origin cargo of HMS 1&2 (80:20) and
shredded sold respectively at $388/MT and $393/MT CFR Turkey. In another deal, 37,000
MT mixed cargo from Belgium including 25,000 MT of HMS 1&2 (70:30), 7,000
MT of shredded and 5,000 MT of plate & structure scrap was sold with an average
price of $380/MT CFR Turkey.
A North American cargo was sold at $398/MT
CFR Turkey for shredded scrap, consisting of less than 10,000 MT of shredded
scrap.
According to market sources, “The market is not
very good. Despite the number of deals late last week, the volume of
transactions remains very low.”
“Scrap buyers will also ask to push down prices.
They will hold the position in the market at the moment before making bulk deals”,
he added to the comment
Black Sea scrap prices breach breakeven point
$380/MT CFR
Ferrous scrap offers from Black sea region fall
below breakeven points on weak demand for the raw material in Turkey. Buyers
are getting higher prices in domestic market in fact.
In a recent deal, 2 cargoes for 8,000 MT of HMS
1 grade sold at $375/MT CFR Turkey last week. This price is below the minimum
$380/MT CFR traders to break even.
Falling iron ore prices, as well as
substantially lower offer prices for finished product from China into the
Mediterranean-Gulf region, have badly affected production levels, which in turn
have resulted in suppressed ferrous scrap demand.
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