Turkish mills and scrap suppliers expected to increase negotiations

Tuesday, 09 September 2014 18:03:35 (GMT+3)   |   Istanbul
The Turkish import scrap market has been quiet since the last week of August with the completion of scrap purchases for September. No new scrap deal was heard until the ex-Baltic deal which was completed on September 1. The biggest reason for the quietness in the market was the high scrap inventories of the Turkish producers and their resolve to wait for attractive discounts. The quiet market conditions partially ended with the second ex-Baltic scrap deal heard on September 4, with the HMS I/II 80:20 scrap price in this deal remaining unchanged at $383/mt CFR compared to the previous deal mentioned above. On the same day, an ex-Europe scrap deal was also concluded with HMS I/II 75:25 scrap prices softening by $5-6/mt compared to previous deals in August to $368/mt CFR. No new scrap deals have been heard since the beginning of the current week.  

European scrap suppliers have started to offer more attractive prices compared to other regions, as the US dollar has gained strength against the euro. On the other hand, Turkish producers are expected to accelerate their scrap purchases for October shipments. Market sources believe that in the coming days ex-Europe scrap deals may be concluded below the current price levels. Additionally, it is heard that some scrap suppliers still have cargos for September shipments and their negotiations with Turkish producers are continuing for these shipments. Turkish producers, with their current advantage in the market, are expected to negotiate on prices and to wait until they gain the discounts they want before accelerating their purchases. 

Meanwhile, scrap suppliers are reportedly worried due to Turkish producers' puchases of Chinese billet at attractive prices. It is thought that Turkish producers are supported by the downtrend of iron ore prices in their negotiations.


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