Turkish import scrap market quietly closes 2014
Turkish import scrap market has made a significantly quiet start to the last week of the year. Market sources state that scrap suppliers have taken time off to celebrate Christmas and with scrap collection activities slowing down, scrap flow to the yards have come to a halt.
Turkish producers’ stocks were on the low side in the beginning of December and hence they started to conclude large volume transactions before weather conditions become harsher and due to ongoing tightness in scrap supply. Scrap prices started to increase sharply and unexpectedly amid fastening buying activity. After concluding deals in the beginning of December Turkish producers have settled and showed little interest in further transactions, causing scrap prices to fall. Over the past ten days scrap prices have trended downwards in the Turkish import scrap market.
After the holiday season, Turkish producers are expected to start their scrap purchases for February shipments but they will probably focus on finished steel sales before fastening their scrap deals. With Chinese government’s determination on the horizon for the removal of its export tax rebate on finished steel exports in the beginning of 2015, the final determination is believed to have an impact on Turkish producers’ finished steel export volume. Also, the decision is expected to have an impact on Turkish producers demand for import scrap and significative role on the future trend of import scrap prices. On the other hand, scrap prices may gain strength if the weather conditions which become harsher on daily basis disturb scrap collection activities and shipments.