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.