Prices in the Turkish import scrap market started last week with a softening trend, with ex-US deals for HMS I/II 80:20 scrap concluded at $244/mt CFR, down $6/mt compared to the previous week. Meanwhile, also last week, ex-UK scrap deals in Turkey were concluded at $239-240/mt CFR and an ex-continental Europe scrap deal was concluded at $230/mt CFR. As the new price range for imported scrap in Turkey has been determined by these deals, the sharp and sudden decreases in scrap prices first gave way to slower and more gradual declines and then switched to sideways movement. In the current week, no import scrap transactions have been heard yet.
In early February, most scrap suppliers in almost all regions, including the Baltic region, have been much more willing to sell their scrap cargos. Looking at the imported scrap deals concluded in the Turkish market since the beginning of the month, the purchases have mostly been ex-US and ex-UK, with just a few ex-Baltic deals. This situation is because scrap suppliers from the Baltic region, who have plentiful scrap cargos, have preferred to hold on to these cargos amid the decreasing trend of scrap prices. Meanwhile, European scrap suppliers have aimed to sell their cargos in their domestic markets rather than in the export markets in the given month.
On the other hand, Turkish steel producers still need to conclude import scrap purchases as they have not completely met their scrap needs during the current month. In the last week of this month, Turkish producers are expected to be in a bargaining process with scrap suppliers from Baltic region. Also, since Turkish steel producer Kardemir has opened its domestic billet sales at $370/mt ex-works + VAT, down $30/mt compared to its previous offers two weeks ago and received orders for a total of 162,000 mt, falling billet prices have continued to exert downward pressure on scrap prices.
Meanwhile, demand for Turkish finished steel in the domestic and foreign markets has seen no significant improvement in the past week. Even scrap suppliers from the Baltic region insist on keeping their prices unchanged for Turkish producers and refuse to give discounts. This stance seems difficult to maintain unless the negative situation for demand for Turkish finished steel improves.