Following the negative market conditions experienced in January and with prices having moved up in parallel to the strong demand seen in Turkey as of the beginning of February, market sources expect import scrap prices in Turkey to maintain their high levels in the short term. It is observed that import scrap quotations in Turkey continued their upward movement last week, and price levels in import scrap deals concluded at the end of last week were higher than the levels recorded at the beginning of the same week, with ex-Baltic HMS I/II 80:20 scrap quotations reaching $362/mt CFR. Although no new import scrap offer to Turkey has yet been heard in the current week, it is impossible to find last week’s price levels in the market as most suppliers are now targeting higher price levels.
Although steel demand in China has failed to meet initial expectations as market players have not yet fully returned to the market after the Chinese New Year holiday (February 15-21), reports of some extensions of Chinese production cuts - varying according to the region - which were initially planned to end in the middle of March, have provided support for the steel futures markets and for steel spot prices in China, causing rises in raw material and finished steel quotations. Despite the high ore inventory levels in China, iron ore prices in the country have reached $80/mt. Since the international steel markets are receiving support from the price rises seen in China, scrap suppliers are not planning to conclude their next sales below the price level of $370/mt CFR. Although it is observed that steel demand in Turkey has failed to reach good levels, finished steel prices in Turkey have continued their upward movement and Turkish steel mills’ rebar export quotations have moved up to $590-600/mt FOB.