With the conclusion of some scrap deals in the past week, it is observed that Turkish steel mills, which had postponed their purchases amid expectations of a further price reduction, have started to return the market. Accordingly, last week a deal for ex-UK HMS I/II 80:20 scrap was concluded at the price level of $390/mt CFR. However, scrap prices in the short term are expected to drop further, despite harsher weather conditions and increased freight costs. In the meantime, market sources believe that ex-continental Europe scrap prices will likely decrease to the level of $380-390/mt CFR Turkey, while ex-US HMS I/II 80:20 scrap offers are expected to move down below $400/mt CFR to around $390/mt CFR, though, as reported, Turkish buyers expect to see ex-US HMS I/II 80:20 scrap at the price level of $385/mt CFR.
Having registering a price softening over the previous week, ex-Black Sea scrap offers have maintained their downward movement, decreasing by $5-10/mt in the past week. Romanian A3 scrap offers are currently at $375-380/mt CFR Turkey, while ex-Russia A3 scrap prices for Turkey are standing at $380-385/mt CFR, but Turkish buyers show little interest in the offers in question.
Market sources indicate that scrap supply in the Turkish domestic market will likely decline significantly as it traditionally does in winter, and, if the finished steel market registers an improvement, increased demand for scrap will boost prices.