According to market sources, ex-Black Sea scrap offers to Turkey for A3 grade scrap have decreased by $10/mt compared to last week to the range of $265-270/mt CFR. On May 27, an ex-Ukraine deal was concluded in Turkey for HMS I/II 90:10 grade scrap at $268/mt CFR Marmara, while a Turkish steel producer concluded an ex-Crimea deal for A3 grade scrap at $264/mt CFR on the same day. Based on these recent scrap deals, price levels have declined by $4-5/mt since the beginning of the current week, amid a lack of demand from Turkish producers.
Suppliers of deep sea and Black Sea scrap are currently active in the Turkish market but Turkish producers are very cautious in negotiations with suppliers. Meanwhile, Turkish producers state that, after the deals concluded in May, they are not in urgent need of scrap and so they have been maintaining a wait-and-see approach after the declines seen in local rebar sales. Some Turkish producers are refusing import scrap offers without any hesitation, while some producers are giving very firm bids in response to suppliers' offers. Currently, scrap suppliers are active and there are a number of Turkish producers which are expected to purchase scrap. Accordingly, some scrap deals are expected to be heard in the coming days. The price levels in these anticipated deals will provide an indicator for other market players who are currently waiting for a clearer price trend.