Buyers in the import scrap market in Turkey are still unwilling to conclude new scrap deals. Although it is heard that only a very few ex-Black Sea purchases of small scrap tonnages have been concluded, no new deep sea scrap transaction has been heard since the ex-US deal concluded for HMS I/II 80:20 scrap at $330/mt CFR in the first week of May.
Last week, a scrap supplier in the US tested the import scrap market in Turkey with offers for HMS I/II 80:20 scrap at $295/mt CFR but failed to conclude any sales. Considering the difficulties in Turkish finished steel sales as well as current finished steel prices, Turkish steel producers state that at present new scrap purchase prices should not be above $260/mt CFR. However, it is observed that Turkish steel mills are also finding it difficult to accept import scrap offers below $260/mt CFR since it is hard to foresee the future in terms of finished steel sales.
Meanwhile, SteelOrbis has been informed that a Turkish steel producer has concluded an ex-Black Sea deal for A3 grade scrap at $240/mt CFR, while Turkish steel producers state that offers below the abovementioned price level can be found if they want to conclude new import scrap purchases.
While import billet prices continue to decline in Turkey, all trading activities have been put on hold as Turkish steel mills wait to see clearer price levels for their finished steel sales before concluding scrap transactions and as finished steel buyers want to see the next price levels for import scrap before concluding any finished steel purchases. Accordingly, both import scrap purchases and finished steel sales have come to a halt in Turkey.