Several deals have been heard in the Turkish import scrap market over the past week, with further decreases seen in scrap prices. Accordingly, ex-US HMS I/II 80:20 scrap bookings have been concluded at $334-335/mt CFR, $7-8/mt lower as compared to the previous levels recorded one week earlier. Meanwhile, ex-UK deals in Turkey for HMS I/II 80:20 scrap have been transacted at $321/mt CFR, indicating a decline of $12-13/mt week on week. No new scrap deal has been heard since the beginning of the current week. Market sources state that some Turkish producers still need scrap and new deals are expected to be concluded in the coming days. Meanwhile, demand for Turkish finished steel is better in the local market than in the export markets.
According to decision of the Turkey's Council of Ministers published in the country's Official Gazette dated Saturday, October 18, Turkish import duty rates on wire rod and steel bars have been increased, except for such products from the EU region and from countries with which Turkey has free trade agreements. The new import duty on boron-added wire rod is now at 40 percent compared to the three percent announced on December 31 last year. The new duty margins are expected to discourage boron-added wire rod imports in Turkey, especially imports from China which have increased recently, and are considered to be a favorable development for demand for local Turkish wire rod and so may have a positive impact on Turkey's scrap import volumes. However, Turkey's scrap imports could still be negatively influenced in the coming period due to the lack of any significant improvement in Turkey's exports of rebar, which is the steel product most exported by Turkish producers. Additionally, Chinese rebar offers are still very competitive in the Middle Eastern market, the most important export market for Turkish producers. Accordingly, it is thought that Turkish producers will try to book scrap at lower levels in the coming period.