During the "New Horizons in Global Steel Markets" 12th Annual Conference organized by SteelOrbis in Istanbul on November 2, Yusuf Güven, director at GMT Metal, stated that in 2017 demand for import scrap in Turkey has picked up thanks to the increase in domestic steel mills’ capacity utilization rates, while going on to say that capacity utilization rates in industrialized countries from where scrap is usually sourced have increased as well. Mr. Güven said that the downward pressure from the electrode shortage has already been reflected in scrap prices, adding that he believes further decreases in scrap prices are unlikely. Referring to the increases in electrode prices, he said that the price levels initially heard are not realistic and that he expects electrode prices will adjust to more reasonable levels. The GMT Metal official also said he believes that mills will turn to shredded scrap in order to consume fewer electrodes and, as a result, the $5/mt difference between HMS and shredded scrap will expand.
Furthermore, Mr. Güven stated that finished steel prices in the US have started to move down amid the uncertainty caused by the postponed results of the Section 232 investigation. He indicated that US-based producers have begun to think that the investigation will not result in an affirmative decision and so they have reduced their prices to prevent imports.
Given China's 40 percent export duty on scrap and the fact that Tangshan is the only port from which the Chinese can export bulk scrap cargo, Güven does not expect China to become a new source of scrap exports. “If China wants to continue exporting steel, it will not sell the scrap on hand to its competitors. Besides, China has ordered six new electric arc furnaces and so the scrap will consumed in the country,” he said.