Higher scrap import offers fail to gain acceptance among Turkish mills

Scrap import offers to Turkey have showed some slight increases, though these increased offers have failed to gain acceptance among Turkish steel mills. Last week, a Turkish mill had opened a scrap purchase tender to book ex-deep sea scrap. However, as ex-US scrap offers were at $400/mt CFR and above levels, the producer canceled the tender without concluding any deals. Moving to this week, SteelOrbis has learned from market sources that the price idea of ex-US scrap suppliers is still at these price levels.
 
In previous weeks, in Turkish mills' ex-Europe scrap bookings the price of HMS I/II 70:30 was at $360/mt CFR and no new offer has been heard so far this week.
 
In many main scrap exporting regions, scrap collection activities have slowed down lately amid the summer holidays and hot weather. In Romania, scrap collection prices are at about $345/mt and, although scrap suppliers think that the ex-Romania A3 scrap price for the Turkish market should be at $380/mt CFR, Turkish mills do not find this price level workable and they have not yet confirmed prices above $370/mt CFR. In the meantime, ex-Russia A3 scrap prices were at $377-379/mt CFR Marmara Sea ports in Turkish mills' latest transactions.
 
As finished steel market prices have lately showed some weakening, Turkish mills are currently very cautious regarding new scrap purchases. It is thought that Turkish steel producers will be more eager to conclude new scrap bookings if they see a revival in finished steel orders for September shipments.