Following the latest ex-US scrap deal to Turkey concluded last week, Turkey's import scrap market now seems very quiet. After the drop in US domestic scrap prices for June remained below expectations and with busheling scrap prices not even showing any changes in some local US markets, the widespread opinion is that scrap prices have bottomed out. Nevertheless, it is difficult to predict the scrap price level in Turkish mills' next transactions due to the approach of Ramadan which will begin on July 9 this year and which is expected to slow down market activity as usual and also due to the uncertainty in the US dollar/Turkish lira exchange rate. Consequently, Turkish mills are now waiting for the market to gain more clarity. As SteelOrbis previously reported, the latest ex-US scrap transaction to Turkey was concluded at $349/mt CFR for a mixed cargo, including HMS I/II 90:10 and shredded scrap.
Market players state that ex-US scrap prices, which had been trending down since the last week of March, are no longer foreseen to decline. While the market is expected to gain more clarity with Turkish mills' next scrap deal, market insiders say that a rebound in scrap prices is likely, if supported also by a revival in the finished steel market on the back of purchases concluded ahead of Ramadan.