Since the middle of March, the import
scrap market in
Turkey has been quiet in terms of transaction activity and indicated a further decline in prices in deals concluded in the third week of the month. Most market players were expecting the declines in import
scrap prices as demand in the finished steel market failed to improve, while at the same time iron ore prices have continued to move on a soft trend. However, at the end of last week import
scrap prices surprisingly indicated an upward trend.
At the end of last week, prices in ex-Baltic deals concluded in
Turkey for HMS I/II 80:20
scrap increased by $2-4/mt compared to the price levels see in mid-March, rising to $259-260/mt CFR. On the other hand,
US scrap suppliers have been fairly quiet since the beginning of March and market players have been wondering when they will return to the Turkish market to conclude deals for April shipments. However, yesterday, March 30, a
US scrap supplier, who had been staying away from the market since the beginning of February, concluded a deal for HMS I/II 80:20
scrap at $260/mt CFR.
Market sources state that value of
scrap has declined by 19 percent since the beginning of the current year. Accordingly,
scrap collection activities have slowed down in most regions which supply
scrap to
Turkey and the inflow to
scrap yards has been below expected levels. Therefore, fewer
scrap offers have been heard in the markets since mid-March, while
scrap suppliers have revised their offers upwards on the back of the tightness of supply in the market.
Meanwhile,
scrap suppliers state that
scrap prices should be increased to prompt activity among
scrap collectors and thereby resolve the tightness of supply. Turkish producers are likely to conclude new
scrap deals in line in order to meet their urgent needs, while they are expected to accept
scrap suppliers' revised prices. However, any increases in import
scrap prices would need support from Turkish producers' finished steel sales or else they will likely be short-lived.