The cancellation of the local election results in Turkey’s biggest city Istanbul has ratcheted up political tensions in the country, while also causing the depreciation of the Turkish lira against the US dollar to gather momentum. Trading activity in the local Turkish finished steel market, which was already weak, has once again become almost stagnant since the markets are waiting for the new election date to be announced, and also due to the inevitable return of the cautious pre-election mood. These developments have caused Turkish steel mills to adopt a cautious stance as regards new scrap purchases and so scrap demand in Turkey has failed to show any recovery from its current weakness.
Although some Turkish steel mills still need to conclude scrap purchases for June and prompt shipments, it is noteworthy that they are not showing any eagerness to conclude deals. Having decreased to $295-300/mt CFR Turkey at the end of last week, HMS I/II 80:20 scrap offers to Turkey are expected to come under stronger pressure and fall in the current week. Overall deep sea HMS I/II 80:20 scrap offers to Turkey are in the range of $295-300/mt CFR, while it is observed that Turkish mills’ purchase price ideas for the same grade do not exceed the levels of $290-295/mt CFR.