Having experienced a very quiet week, both sellers and buyers in the import scrap market in Turkey have taken a step back to evaluate the current situation. According to the market players surveyed by SteelOrbis, collection activities have started to slow down. As suppliers have started to monitor the market, there are not many offers or firm bids in the market.
The estimated price level for deep sea HMS I/II 80:20 scrap is in the range of $210-220/mt CFR Turkey. Earlier this week, ex-US deep sea HMS I/II 80:20 scrap prices were at $229-230/mt CFR. In the meantime, some market sources state that there are some efforts to buy or sell at lower levels, but the gap between buyers’ and sellers’ price ideas is wide.
Market players state that Romanian suppliers are unwilling to conclude sales below $210-215/mt CFR, citing collection costs which would not allow such a decline in quotations. The latest ex-Romania HMS I/II 80:20 prices were at $216-217/mt CFR Turkey earlier this week.
Meanwhile, Turkish buyers are seeking prices at $205-210/mt CFR for deep sea and $200-205/mt CFR for short sea scrap.
The general opinion in the market is that sales and prices in the finished steel market in Turkey will be the determining factor for future import scrap quotations, though some market sources believe that, if scrap collection activities slow down significantly, an equilibrium can be achieved in the market.