How long will uptrend of import scrap prices in Turkey last?
After beginning the month of May with an uptrend in prices, players in Turkish import scrap market concluded more than ten ex-US scrap deals at the second week of month and the increase of import scrap prices gained momentum. In early last week, Turkish steel producers accelerated their negotiations with scrap suppliers for bookings of June shipments and in response to this higher demand scrap suppliers began to offer higher prices. It was the key concern that whether this increased price will gain acceptance or not by Turkish steel producers.Many import scrap deals for HMS I/II 80:20 scrap in Turkish market were concluded, respectively. In addition, Turkish import scrap market has made a quiet beginning for this week in terms of transaction volumes, however, since some steel producers are heard to be in search for scrap cargos, new import scrap deals are expected to be concluded in the coming days.
The rapid increase of import scrap prices came as a surprise to global market players, raising the question if the prices will increase, which was lastly seen in January this year. As a response to increasing import prices, some Turkish steel producers have started to make inquiries for import billet instead of import scrap. It is beyond doubt that suppliers will face a downward pressure over their prices, if Turkish producers begin to conclude deals for import billet at a reasonable price level. However, when considering the current situation, import scrap suppliers are out of sales pressure by the help of the uptrend of prices and they have adopted strong stance in keeping their prices since they see decent demand from Turkish steel producers. Also, finished steel sales in Turkish market are at quite decent levels and finished steel traders’ price increases have gained acceptance amid tight supply issue seen in some regions of the country. This situation is also providing support for import scrap suppliers in keeping their prices. Accordingly, import scrap prices are expected to maintain their strong stance as long as Turkish market players’ finished steel sales and producers’ import scrap demand are on the high-side.