Having started December with strong demand for import scrap, Turkish mills concluded plenty of import scrap deals, while import scrap quotations continued their upward trend in parallel with the strong demand. While deep sea HMS I/II 80:20 scrap prices in Turkey had increased to $334/mt CFR in the previous week, they started last week at $340/mt CFR and rose to $352/mt CFR towards the end of the week.
In the current week, it is observed that Turkish steel mills’ demand for import scrap has declined significantly given the slight slackening of domestic demand for finished steel seen in Turkey at the start of this week and also on the back of the many import scrap purchases already concluded by Turkish mills.
While semi-finished and finished steel prices in the local Chinese steel market have maintained their strength due to the slowdown in domestic steel production, quotations in the global steel market still remain at high levels, while Chinese finished steel producers are now importing billet from Iran due to high domestic billet prices. Although the Turkish lira has strengthened significantly against the US dollar in the current week, this appreciation of the Turkish lira has not yet been reflected in domestic finished steel quotations in Turkey, which are unchanged from last week's levels. In the US, domestic scrap prices for the December buy cycle have increased and are expected to rise further in January. On the other hand, freight prices are still at high levels.
No decline in scrap quotations in anticipated in the short term as prices in the global steel market are expected to maintain their strength against the backdrop of the ongoing high levels of steel prices in China.