Will Turkish mills’ resistance bring down scrap prices?

Tuesday, 01 March 2011 15:36:48 (GMT+3)   |  
       

Turkish steel mills have halted their scrap purchases once again, leading some market players to anticipate a decline in scrap prices. However, international scrap suppliers indicate that a scrap price drop is unlikely to occur for now.
 
For the time being, ex-US scrap prices have still remained above Turkish mills' price idea. SteelOrbis has learned from market sources that, while ex-US HMS I/II 80:20 scrap offers to Turkey stand at $460/mt CFR, Turkish steel producers are not ready to pay this price yet considering actual finished steel prices.
 
Last week, ex-Europe scrap offers to Turkey for HMS I/II 75:25 were at $437/mt CFR, while offers for HMS I/II 80:20 were standing at $445/mt CFR, with offers for HMS I scrap at $450/mt CFR. Although the rise of the euro against the dollar exerts pressure on European scrap offers, SteelOrbis has learned that these offers are still valid this week.
 
Ex-Black Sea A3 scrap prices vary depending on the region. Russian A3 scrap offers to Turkey stand at $445-450/mt CFR, ex-Romania A3 scrap offers are at $440-445/mt CFR, while Bulgarian A3 scrap offers to the Turkish market stand at $435-440/mt CFR. However, Turkish mills' price idea has remained quite below these levels. SteelOrbis has learned from scrap suppliers that Turkish steel producers' counter offers for ex-Romanian A3 scrap offers have been at $430/mt CFR, while their counter offers to Bulgarian prices have been at $420/mt CFR.
 
The new US domestic scrap prices for March expected to be announced this week are also likely to shape the Turkish scrap market. Since Turkish steel mills and international scrap suppliers have different price expectations, no new scrap bookings have been concluded lately in Turkey.

Similar articles

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

Baltic countries and Czech Republic seek EU ban on ex-Russia scrap imports

27 Mar | Steel News

US iron and steel scrap exports down 12.9 percent in January

26 Mar | Steel News

European scrap prices move up above $385/mt

26 Mar | Scrap & Raw Materials

Wholesale metal scrap sales in Mexico decrease 15.6 percent in January

25 Mar | Steel News

Tata International launches another scrap yard, this time in Greece

25 Mar | Steel News