According to market sources, ex-Black Sea scrap offers to Turkey have continued their downward trend in line with the declines seen in deep sea offers during the past week. Russian and Ukrainian offers to Turkey for A3 grade scrap have decreased by $5/mt compared to last week to the range of $265-268/mt CFR. Meanwhile, Romanian and Bulgarian offers to Turkey for the same grade scrap have also declined by $5/mt since last week to $262-265/mt CFR.
A Turkish steel producer concluded an ex-Ukraine deal this week for A3 grade scrap at $266/mt CFR Marmara. Some scrap suppliers in the Black Sea region, believing that the declining trend in import scrap prices will continue in the coming period, have thus been ready to sell their scrap cargos as soon as possible, below the average price range in the market. This resulted in the conclusion of one deal from Russia to Turkey for A3 grade scrap at $260/mt CFR Marmara. Some Turkish producers with no urgent need for scrap have retreated from the market, while others are very cautious about concluding new transactions. Therefore, transaction activity in Turkey for both deep sea and ex-Black Sea scrap has slowed down. Demand for imported scrap in Turkey is expected to gain clearer shape after the June 7 general election. Suppliers of deep sea and Black Sea scrap are currently active in the Turkish market but Turkish producers are very cautious in negotiations with suppliers. Meanwhile, Turkish producers state that, after the deals concluded in May, they are not in urgent need of scrap and so they have been maintaining a wait-and-see approach after the declines seen in local rebar sales. Some Turkish producers have not been showing any interest in import scrap offers, while some producers are giving very firm bids in response to suppliers' offers. Currently, scrap suppliers are actively seeking to sell and some Turkish producers which are expected to purchase scrap. Accordingly, some scrap deals are expected to be heard in the coming days. The price levels in these anticipated deals will provide an indicator for other market players who are currently waiting for a clearer price trend.