Turkish import
scrap prices have continued their sharp downtrend over the past week. An ex-Baltic HMS I/II 80:20
scrap transaction has been heard at $305/mt CFR during the past week, declining by $15-20/mt week on week. Similarly, an ex-St. Petersburg HMS I/II 80:20
scrap deal has been concluded at $304/mt CFR, decreasing by $15/mt compared to the previous ex-Petersburg deal two weeks ago.
Last week, ex-Australia iron ore offers for 61.5 percent Fe content have decreased to $75/mt, which is their lowest level since September 2009, thus increasing the downward pressure on
scrap prices. However, the main reason for the declining trend of import
scrap prices in
Turkey - the world's largest
scrap importer - is believed to be the lower demand for Turkish finished steel products. Especially in the markets in the Middle East and North Africa, Turkish producers' profit margins have been declining on a daily basis due to cheaper ex-China rebar offers. Accordingly, Turkish producers state that they do not want to pay higher prices for
scrap. The sudden declines already recorded in
scrap prices have increased the confusion in
Turkey's
scrap import markets, while Turkish producers are expected to try to conclude purchases at lower prices in the coming days if no significant improvements are seen in demand for Turkish finished steel products.