Import
scrap prices in
Turkey, which had started to follow a declining trend as of the first week of January and subsequently recorded sharp decreases, gave signals of a possible rebound as of the beginning of February with suppliers especially those in the US and the Baltic region facing difficulties because of their high costs. Although HMS I/II 80:20
scrap quotations from the UK and
Europe declined to $220/mt CFR last week, it was observed that the suppliers in the US and the Baltic region failed to reduce their
scrap offers below $240/mt CFR and $235/mt CFR, respectively. With European suppliers increasing their
scrap prices in the current week, their HMS I/II 75:25
scrap quotations for
Turkey have now reached $240-241/mt CFR.
Although prices of iron ore and Chinese billet have softened following the Chinese New Year holiday, import billet prices for
Turkey are still far from attractive compared to
scrap quotations when it comes to considering rebar production costs. With the Turkish lira gaining strength slightly against the US dollar, it is observed that Turkish steel mills' finished steel sales have revived slightly. If Turkish producers' finished steel sales to their export markets also improve in the coming days, the producers may accelerate their
scrap purchases.
Today, February 7, a Turkish steelmaker has opened a
scrap procurement tender and, although no offer has been heard from the US or the Baltic region yet, HMS I/II 80:20
scrap offers from these regions are expected to be higher than $250/mt CFR.