Following the conclusion of many import
scrap deals last week, no new import
scrap transaction has yet been heard in
Turkey this week. Although Turkish steel mills have not completely left the market, they are also in no rush to conclude new
scrap bookings, while their firm bids are now heard to be lower than the price levels seen in the deals concluded last week. Many deep sea HMS I/II 80:20
scrap purchases were heard last week at $270-275/mt CFR, while short sea bookings were concluded at $264-266/mt CFR.
The negative developments seen in China last week as well as the sharp declines recorded in iron ore prices and in Chinese finished and semi-finished steel export prices have exerted downward pressure on global steel quotations, while Turkish steel producers started to be concerned by the ongoing downward movement of Chinese steel prices towards the end of last week.
The Chinese steel market started the current week with a further downward movement, which is believed to be the main reason why Turkish steelmakers are in no rush to conclude new import
scrap deals. While Turkish mills are still under pressure in terms of their export prices and also due to their ongoing problems in export sales, they have raised both their domestic and export rebar quotations on the back of the continuing domestic demand for rebar in
Turkey. Turkish steel producers are expected to wait for a clearer trend in the global market before they determine a new strategy for import
scrap purchases.