Last week, the import scrap market in Turkey made a lively start in terms of transaction activity. A scrap supplier in the US concluded deals in Turkey for HMS I/II 80:20 scrap in the range of $227.5-229/mt CFR, increasing its prices by $2-4/mt compared to its sales concluded in the third week of July. This caused a perception that prices of import scrap in Turkey were starting to rise. Moreover, another Turkish steel producer concluded an ex-Canada deal for a scrap cargo at the average price level of $237/mt CFR, $8-10/mt higher than the Canadian supplier’s previous deal, strengthening the perception of upward movement in import scrap prices in Turkey. However, a Turkish steel producer concluded an ex-St. Petersburg deal in the same period for HMS I/II 80.20 scrap and bonus grade scrap at the average price level of $220/mt CFR. The lower price in this transaction created uncertainty in the Turkish market, casting doubt on the upward movement of import scrap prices. Meanwhile, Chinese billet suppliers tried to increase their offers to Turkey after Ramadan but failed, while amid the resulting uncertainty in the market scrap suppliers’ prices fluctuated throughout the week.
On the other hand, European scrap suppliers, who had been staying out of the Turkish market since the downward movement in import scrap prices started in mid-June, have returned to the market this week. A Turkish steel producer has concluded an ex-Europe scrap deal at the average price level of $229.5/mt CFR in the current week. As expected, scrap suppliers in the Baltic region have also accelerated negotiations with Turkish producers in the same period. A Turkish producer in Izmir has concluded an ex-St. Petersburg deal for HMS I/II 80:20 scrap at $233/mt CFR, $3-4/mt higher than the previous import scrap deals in Turkey. Even though the deals concluded recently have indicated a slight increase in prices, market sources expect prices to move sideways at around $230/mt CFR. Chinese billet suppliers’ offers to Turkey are now in the range of $320-325/mt CFR after their failed attempt to increase their billet prices, while offers at $315/mt CFR are also available in the market. Additionally, Turkish steel producers’ sales in both their local and export markets have only improved slightly after Ramadan and are still on the sluggish side. As a result, no significant increase is expected in import scrap prices in Turkey in the short term.