After concluding many
scrap deals amid the upward price trend in February, Turkish steel producers continue to show demand for import
scrap, though their demand is not at very high levels at present. The price for HMS I/II 80:20
scrap in the latest ex-Baltic
scrap deal was at $284/mt CFR. While US-based suppliers' offer prices to
Turkey are currently higher than $290/mt CFR, Turkish steel producers are unwilling to accept this price level yet and for now they are trying to conclude
scrap bookings at prices not higher than $285/mt CFR.
Many suppliers in the Baltic region have completed their sales for February, while they are unwilling to conclude any sales before gaining a clearer picture of their
scrap collection costs. On the other hand, trading activity in
Europe has slowed down amid the semester break in the region. Also, following their export sales concluded in February, European
scrap suppliers prefer to wait for the announcement expected at the beginning of March of domestic steel producers'
scrap purchase prices.
Although Turkish steel mills continue to make price inquiries for import
scrap, it is observed that they are maintaining a cautious stance towards new
scrap bookings, seeking to gain assurance of the stability of
scrap quotations. Despite steel product inventory levels in China being on the high side, Chinese steel suppliers are anxious to avoid making any sharp adjustments to their prices given the news of production cuts and the start of the National People's Congress on March 5. In the short term, import
scrap prices are not expected to indicate rapid movements.