Decline in ex-US scrap prices brings relief for Turkish mills

It is observed that today's scrap deal for 90,000 mt of ex-US HMS I/II 80:20 in Turkey at the average price level of $381/mt CFR has brought relief to the Turkish scrap market. This is because, with almost no scrap purchases concluded from the US over a long time, Turkish steelmakers had been expecting ex-US scrap offers to drop to levels of $380-385/mt CFR, following a decline in ex-Romania, Baltic and European scrap prices. Meanwhile, having seen immediate and good demand for Turkey-based Kardemir's rebar and billet sales and with the conclusion of the ex-US scrap deal, Turkish traders' rebar prices are also expected to gain clarity soon.
 
On the other hand, after concluding some short sea scrap transactions last week, Turkish mills, currently operating with very little scrap inventories, will likely accelerate their HMS I/II scrap purchases from the US at $380-385/mt CFR. In the meantime, the situation in the Turkish scrap market has become clearer thanks to the drop in scrap prices to the expected levels, while improved purchasing activities will likely boost the market. It is thought that semi-finished and finished steel prices will likely remain stable or even record some upward movements in line with the improved market activities.