The tranquil state of the Turkish market seems to be still ongoing since last week.
A kind of uncertainty dominates
scrap markets where buyers and sellers are waiting for each other's move. Thinking that supply of A3 grade Black Sea
scrap that suffered serious delivery problems for a long time, will finally increase with the softening of weather conditions in Black Sea, Turkish mills have been putting downward pressure on
scrap prices since last week. In fact many buyers in the market expect that prices to decline with the increase in supply. However, on the sellers' side, when analyzed in terms of cost, price levels at $250-253/mt CFR Turkish ports requested by Turkish mills do not seem to be attractive. Although there are bookings heard to have been concluded for small tonnages at around or slightly below these levels, it might not be so trustworthy to think same are reflecting actual market levels as they are sales, concluded by suppliers who had to move tonnage under pressure or who had previously taken position.
Price levels of new sales to be concluded today are even thought to be higher. The fact that buyers in expectation of price declines do not inquire for any offers and that suppliers, which think price declines are irrational, do not give any offers have caused markets to settle in serenity and uncertainty.
Looking at US
scrap markets, we also see that there are not any significant declines there either. Although US
scrap suppliers do not give many offers to Turkish mills, it is heard that they haven't decreased their prices much.
Although it is heard that European
scrap suppliers give offers at $248-249/mt CFR Turkish ports for HMS I/II 60:40, no concluded booking has been heard up to now.
Another issue that pushes Turkish mills into hesitation is that Turkish mills, which have concluded their finished steel sales till mid-June cannot make any forecast about market situation after June. It is not known yet what will happen in the European markets this year, which almost halts in July and August in general. This situation prevents mills from making any forecast about the market trend and from acting determined in their
scrap purchases.
The first prices that will be accepted by buyers and sellers will most probably determine the direction of
scrap markets.