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.