No new import scrap deal been heard in Turkey this week. It is noteworthy that Turkish steel mills are currently focusing in particular on their domestic finished steel sales, while scrap suppliers are in no rush to conclude new sales. In import scrap deals concluded in Turkey last week, ex-US and ex-Baltic HMS I/II 80:20 scrap was priced at $290/mt CFR. Scrap suppliers’ price ideas are heard to be higher this week, while it is heard that suppliers expect to conclude sales for HMS I/II 80:20 scrap at $300/mt CFR in the short term.
While domestic scrap demand in the US continues to remain strong, at the same time scrap exports are seen to be reviving. In Europe, with the euro gaining strength against the US dollar, European scrap suppliers are struggling to collect material and the stronger euro is exerting pressure on export prices.
Demand and prices in the global scrap market have been supported by the slight improvement seen in finished steel demand in Turkey last week after the end-of-Ramadan holiday, while also receiving support from the ongoing upward movement of Turkish domestic finished steel prices in the current week and by the absence of Chinese steel suppliers in the international markets as a result of the strong domestic demand and rising finished steel quotations in China. Meanwhile, Turkish steel mills are seen to be monitoring their finished steel sales while they continue to make price inquiries for import scrap. In the short term, new import scrap deals are expected to be concluded in Turkey.