Turkish producers have been on hold as they wait for scrap prices to hit bottom and they continue to delay their scrap purchasing activities as much as possible. As published in detail last week in our SteelOrbis Steel Prices section, a limited number of cargoes were booked.
Initially a booking concluded at $447/mt CFR level ex-Canada created surprise in the market. Thereafter, another cargo was booked at the same level ex-Baltic region. No cargo booking has been heard ex-US. It is heard that the offer level of $455/mt CFR ex-US for HMS I/II 80:20 has not been accepted by Turkish buyers.
Ex-Europe HMS I/II 70:30 is offered at $409/mt CFR. In Europe scrap suppliers are focused on exports and this creates difficulties for European steel producers.
For scrap ex-Black Sea, prices are observed to have declined rapidly. Turkish producers booked A3 scrap at $440/mt CFR last week, but today the A3 price level is at around $425/mt CFR.
The inventory levels of Turkish steel producers are considered to be low and therefore they are expected to start buying once scrap prices hit bottom. On the other hand, finished steel producers in the international market are also expecting prices to hit bottom. Clarification of scrap prices will also help finished steel prices to find their path.