Last week, the volume of scrap offers had increased, causing Turkish steel producers to withdraw from the scrap market. So far the Turkish steel mills have still not started their scrap bookings. After the sudden upward climb of scrap prices in early January, transaction activity in the scrap market has almost ground to a halt and this has raised anticipations of a softening in scrap prices.
No ex-US scrap deal to Turkey was heard last week. SteelOrbis has learned that last week's ex-US scrap offers at $515-520/mt were unable to find acceptance in the Turkish steel market and no new ex-US scrap offers for Turkey have been heard so far this week. Since the Far Eastern and Turkish steel markets halted their scrap bookings, US scrap exports have notably slowed down in the past week.
Ex-Europe scrap prices indicate a softening. SteelOrbis has learned from market sources that European HMS I/II 70:30 scrap offers to Turkey, which were at $504/mt CFR 10 days ago, are at $489/mt CFR for the time being.
The ex-Black Sea A3 scrap price for Turkey has regressed from last week's $505/mt CFR to $490/mt CFR this week. SteelOrbis has been informed that Turkish steel producers' price idea for A3 scrap is now below $490/mt CFR, with some A3 scrap transactions concluded below the level of $490/mt CFR Marmara.
The scrap price idea of short-sea scrap suppliers, such as Israel and Lebanon, stands at $470-475/mt CFR; however, this scrap price level has not been accepted by Turkish steel producers.
Although Turkish steel producers need to supply scrap for loading in February, the lack of acceptance for rapidly increased finished steel prices as well as weak demand causes these steel producers to have difficulties in accepting high scrap prices. Thus, the Turkish steelmakers are postponing their scrap purchases for now.