It is observed that Turkish steel mills have continued their price inquiries for import scrap over the past week with a view to meeting their needs, but they have adopted a cautious stance as regards actual purchases due to the weak demand for their finished steel products from both their domestic and export markets.
Meanwhile, Turkish mills are trying to exert downward pressure on import scrap offers since they do not expect a recovery in their finished steel sales. However, after Egypt’s decision to impose duties on import billet, scrap suppliers do think that scrap demand in Egypt will increase, and so they are unwilling to reduce their export prices, but instead are testing higher price levels.
HMS I/II 80:20 scrap offers from the Baltic region and the US to Turkey are at $313-315/mt CFR and $315/mt CFR, respectively, while Russian HMS I/II 90:10 scrap offers to the same destination are in the range of $303-305/mt CFR. Additionally, SteelOrbis has been informed that Turkish mills have concluded transactions for Romanian A3 grade scrap at $295/mt CFR.
Turkish steelmakers are not expected to abandon their cautious stance in the short term, while scrap suppliers are expected to remain unwilling to reduce their offers amid the anticipated demand rise in Egypt and also due to the sustained high levels of global iron ore quotations.