The import
scrap market in
Turkey started February with a sharp declining trend due to sales pressure on suppliers, while the sharp decreases gave way to gradual declines in the second week of February, particularly after ex-US and ex-UK transactions concluded in
Turkey. In February, Turkish producers failed to conclude enough deals to satisfy their needs and in the last week of February market players were wondering when Turkish producers would make a move to buy
scrap to meet their needs.
At the end of February, the
scrap stocks of suppliers in the UK and US have declined somewhat. Meanwhile, Baltic-based
scrap suppliers, who have concluded very few transactions since the beginning of February, have preferred to hold on to their higher-cost
scrap cargos until the market improves. In
Europe,
scrap suppliers have been focusing on their local markets due to livelier demand. Additionally, European
scrap collectors do not wish to conclude new deals after the sharp declines seen in the market, and so
scrap supply from
Europe has declined. Under these circumstances,
scrap suppliers have found themselves in an advantageous position vis-a-vis Turkish producers. Currently, all market players are focused on the
scrap purchase tenders opened on February 26 by the two Turkish producers, one in
Turkey's Iskenderun region and the other in the country's Black Sea region. It has been reported that few offers have been received for the tenders, while the offers in question have been in the range of $250-255/mt CFR, indicating an increase of $5-10/mt compared to deals concluded last week. Price levels in the import
scrap market in
Turkey will become clearer after these tenders. Turkish producers will probably accept suppliers' offers in order to replenish their stocks in the coming days and so will accelerate their purchases, resulting in upward movement in the import
scrap market in the short term. However, if demand for Turkish finished steel exports does not provide support for the anticipated uptrend in the
scrap market, then the uptrend will be short-lived.