Yesterday, April 16, many import scrap deals were reported in the Turkish market, coming as a big surprise to market players, who started to wonder why so many import scrap deals were concluded in Turkey during the current week. In particular, three different scrap bookings by a steel producer in Turkey's Iskenderun region on separate days of the week have attracted considerable attention. In these deals, two ex-UK deals for HMS I/II 80:20 scrap were concluded at $263/mt CFR, up $4-5/mt week on week, and at $267/mt for prompt shipment, respectively, while a third deal ex-Europe for HMS I/II 75:15 scrap was concluded at $259/mt CFR. Also, a Turkish producer from Black Sea region concluded an ex-US deal for HMS I/II 80:20 scrap at $269/mt CFR, up $5-6/mt week on week. The reason for the conclusion of up to 10 import scrap deals in the Turkish market in the last three days was mainly the stronger demand from Turkish producers', especially producers in the Iskenderun region, due to their rebar sales to Iraq and Egypt.
On the other hand, construction activity in Turkey has accelerated amid the warmer weather conditions and ahead of the June general elections, impacting positively on Turkish producers' demand for both rebar and scrap. Some foreign scrap suppliers had been holding on to their high-priced scrap stocks, expecting an increase in scrap prices. With scrap prices now moving upwards, they may take advantage of the new price levels and decide to sell their stocks. However, market sources state that Turkish producers may show little interest in these stocks as they have already concluded many import scrap deals and are in a relatively comfortable position.