What will be the trend of Turkish import scrap market?
Turkish import scrap market has been lively over the past week against the backdrop of new transactions and increasing scrap prices.These increases in scrap prices have created a great confusion in the market, while producers have met their immediate scrap needs with the purchases they have concluded in the last seven days for shipments in January.
Turkish producers have revised their finished steel prices upwards on the back of increasing raw material costs following the increases seen in scrap prices. Currently, Turkish producers are trying to convince their customers in the export markets to accept their new finished steel prices. However, there have been no new deals concluded at those price levels, while market sources believe that buyers entering holiday mood in the US which is recently a leading export market for Turkish exporters, has a negative impact on sales activity. Meanwhile, demand in one of Turkey’s important export markets, the Middle East, has not improved yet.
Moreover, scrap collection activities have slowed down ahead of the Christmas and the New Year holidays. Therefore, scrap trade activity is expected to be slow in the coming days, while prices are likely to move sideways in the same period. The trend of scrap prices will be clearer after the holiday season and demand for finished steel products is still the most important factor on scrap prices’ trend.
On the other hand, the Russian ruble has weakened rapidly against the US dollar over the past week but CIS steel producers have not reflected this loss to their prices yet. If the CIS billet producers solve their tight supply issue, significantly reflect weakened ruble to their offers and focus on Turkish market in the coming days, market sources believe that ex-CIS offers can put pressure on scrap suppliers. Meanwhile, iron ore prices continue to trend downwards and are expected to put additional pressure on scrap prices