Although demand for import
scrap in
Turkey was at high levels in the first half of July, import
scrap prices in the country had fallen, though this overall situation with regard to demand and prices has been reversed in the second half of the month. The coup attempt on the night of July 15 created political and economic turmoil in
Turkey, causing Turkish steel producers to reduce their import
scrap purchases. However, despite the slower demand import
scrap prices in
Turkey have moved up in the
scrap deals concluded as of last week. Last week, ex-US HMS I/II 80:20
scrap quotations to
Turkey had increased by $13/mt week on week to $229/mt CFR, while ex-Baltic HMS I/II 80:20
scrap prices to the same destination had moved up by $10/mt week on week to $228/mt CFR.
In the current week, it has been heard that import
scrap suppliers have raised their offer prices to
Turkey. SteelOrbis has been informed that ex-US HMS I/II 80:20
scrap prices to
Turkey are currently at $235/mt CFR, while ex-Baltic
scrap suppliers' offers to
Turkey for the same grade are in the range of $233-235/mt CFR. However, no new deal has been heard at these price levels. Meanwhile, Russian suppliers' offers to
Turkey for A3 grade
scrap are now at $225/mt CFR and above. However, it has been observed that Russian
scrap suppliers are still worried due to the ongoing political tensions in
Turkey. Additionally,
scrap collection activities in
Europe have slowed down during the summer holiday season, while most suppliers in the region expect an upward movement in
scrap prices after the end of the holiday season with the support of higher domestic demand.
Although it is believed that the downward trend of Chinese billet quotations and especially the stagnant activity in the local Turkish finished steel market will be obstacles to any possible acceleration of Turkish steel mills' purchasing activities for import
scrap, Turkish producers are expected to continue their import
scrap purchases maintaining a cautious approach.