Following the scrap deals heard last week, it has been observed during the SteelOrbis 2017 Spring Conference & 76th IREPAS Meeting held in Budapest early this week - where many buyers and sellers came together - that Turkish steel producers are in no rush to conclude new scrap deals.
Turkish steel mills' price ideas for HMS I/II 80:20 scrap are lower than $261/mt CFR, the price level seen in the most recent scrap transaction in Turkey, while it is heard that Turkish buyers' firm bids to the US suppliers are at this level in the worst-case scenario. On the other side, it is observed that scrap suppliers are not under pressure either to conclude transactions; in fact, they are seeking to raise their scrap quotations slightly with the view that their current prices are at bottom levels. Although there have been rumors of a deep sea scrap deal concluded in Turkey at $255/mt CFR, the deal in question has not been officially confirmed.
Additionally, the sharp fluctuations of Chinese billet export prices since the beginning of the current week are causing apprehension in the international markets. Turkish steel producers are having difficulties in achieving their targeted finished steel price levels. As a result, they are waiting to see a clearer trend in the finished steel markets and also to observe how their finished steel sales perform, before stepping up their import scrap purchases.