While import scrap prices in Turkey are observed to have fallen in the most recent deals, Turkish steel producers are seeking to maintain a cautious stance towards scrap purchases. In the ex-Europe scrap deal concluded at the past weekend HMS I/II 80:20 scrap was at $308/mt CFR, while an ex-UK HMS I/II 80:20 scrap deal was concluded at $315/mt CFR. In the same period, a Turkish mill had offered a firm bid of $315/mt CFR for an ex-US HMS I/II 80:20 scrap cargo, though this level failed to gain acceptance from the supplier.
In the current week, SteelOrbis has been informed that an ex-Baltic HMS I/II 80:20 scrap offer to Turkey has been given at $315/mt CFR, while an offer for an ex-Europe scrap cargo to the same destination was at the average price level of $314-315/mt CFR. Meanwhile, it is heard that ex-US scrap suppliers are trying to maintain their price levels at $320/mt CFR. Although the local election in Turkey is now over, there are still uncertainties about the results in some regions of the country, and so Turkish steelmakers are still receiving weak demand from their domestic market. Additionally, no significant change has been observed in demand for Turkish finished steel in the export markets to which Turkish mills regularly conclude sales. Having acquired the right to take a share of the European Union’s import steel quotas imposed for the April-June period, Turkish mills are expected to focus on this region as they try to gain a maximum share of the common quota imposed for all countries.
It is observed that Turkish steel producers are trying to gain a clearer perspective of the future trends of their domestic and export markets while they remain in no rush to conclude new scrap purchases. At the same time, scrap suppliers are not in any rush either due to lower prices. SteelOrbis observes that both parties are waiting for clearer sentiment in the market, while they will also come together at the SteelOrbis Spring 2019 Conference & 80th IREPAS Meeting which will be held as of the coming weekend with strong attendance figures.