The Turkish import
scrap market started the current month with slight upticks and has since moved mostly sideways. Market sources inform SteelOrbis that reports have been heard of an ex-US deal concluded in the Turkish market on December 4 for a
scrap cargo consisting of HMS I/II 80:20
scrap and bonus grade
scrap at the average price level of $312.5/mt CFR, for prompt shipment. No new transactions have been heard since the beginning of the current week.
In October, some Turkish rebar producers halted their production, while some of them reduced their shifts amid insufficient demand in the Turkish rebar market. This situation has negatively impacted on Turkish rebar producers' demand for
scrap. Even though their demand for
scrap has been declined compared to the previous period, Turkish producers still want to purchase
scrap ahead of the cold winter weather.
On the other hand, it is reported that the
scrap flow at
scrap collection yards has been disrupted by the cold weather. Additionally, most
scrap suppliers find it difficult to procure
scrap from their local markets for their previously concluded sales. Under these circumstances, import
scrap supply has tightened as it is becoming far more difficult to procure
scrap from the spot market. Meanwhile,
scrap collection activities are expected to slow down ahead of the Christmas holiday and tightness in availability of
scrap may increase accordingly.
Finished steel sales are unlikely to improve in the short run, while Turkish steel producers are also unlikely to accept sharp increases in
scrap prices. Additionally, it is heard that Turkish steel producers have concluded ex-CIS billet deals in the range of $400-405/mt CFR. In this context, if
scrap suppliers increase their prices further, Turkish steel producers will instead accelerate their billet purchases. As a result, import
scrap prices are expected to continue moving sideways but with some slight upticks throughout December.