Following the sharp declines recorded in January, import scrap prices in Turkey started to move up in early February and are still increasing. In the current week, Turkish steel producers' demand for import scrap has been strong, while most scrap suppliers are still postponing their offers to Turkey, targeting higher offers prices later. In the previous import scrap deals in Turkey concluded last week, prices for HMS I/II 80:20 scrap were higher than $260/mt CFR. Additionally, SteelOrbis reported last week that suppliers in the US and Baltic region have increased their offers above the price level of $270/mt CFR. In the current week, amid strong demand from Turkish steel mills for import scrap and the support for the steel markets coming from the $5.8/mt rise seen in Chinese iron ore quotations on February 13, scrap suppliers have pushed their offers up further compared to the price levels recorded last week.
In China, semi-finished and finished steel prices have increased sharply in line with iron ore quotations, and so China is not an immediate threat in the global steel market right now. Although Turkish steelmakers are finding it difficult to conclude sales to their traditional target markets such as the United Arab Emirates (UAE), the US and Egypt, they have revised their offers to the UAE and the US upwards due to the rises seen in import scrap prices. However, following the price increases recorded in China, Turkish steel producers have focused on China's traditional target markets and are still concluding billet and rebar sales to the Far East amid continuing demand from the region. Meanwhile, domestic finished steel quotations in Turkey are also moving up. Although buyers in Turkey are still somewhat cautious, demand for finished steel in the country which had been postponed for a long time is livelier now.
It is believed that the prices of HMS I/II 80:20 scrap in the next deep sea scrap deal concluded in Turkey will be higher than $270/mt CFR. Additionally, scrap prices are expected to continue their upward trend in the coming period.