While import scrap demand in Turkey have remained at low levels, some Turkish steel mills have given firm bids to scrap suppliers, which considered bids to be on the low side and failed to meet Turkish mills' target levels.
Although there are deep sea HMS I/II 80:20 scrap offers in the Turkish market below the $300/mt CFR level, Turkish steel producers’ price ideas for deep sea HMS I/II 80:20 scrap are observed to be around $285/mt CFR. While Turkish steelmakers target approximately $275/mt CFR for short sea scrap, SteelOrbis has been informed that they are experiencing difficulties in terms of finding this level in the market despite the further fall recorded in short sea scrap quotations. Meanwhile, Russian HMS I/II 90:10 scrap offers to Turkey are at $290/mt CFR.
No significant price movements have been observed in Chinese steel market during the past week, while global rebar quotations have continued their downtrend. As a result, Turkish mills’ rebar prices, which have fallen to $460/mt FOB on actual weight basis, are exerting pressure on scrap quotations. On the other hand, Turkish steel producers’ need for scrap has increased as they have not concluded a deal for a long time now. Hence, Turkish steelmakers may conclude some deep sea scrap transactions in the current week in the range of $285-295/mt CFR.