Scrap prices are still under pressure, having started to move down as of mid-November as Chinese steel suppliers gave competitive offer prices to the global market and having continued to decrease due to the weakening of global scrap demand. While Turkish mills have stepped up their demand for scrap slightly as they had concluded a very limited number of scrap bookings in December, it is observed that import scrap prices in Turkey in the latest deals have moved downwards, with ex-US HMS I/II 80:20 scrap bookings in Turkey being concluded at $280/mt CFR and ex-Europe HMS I/II 80:20 scrap bookings being concluded at $273/mt CFR. Also, there are reports that a Turkish mill has concluded an ex-UK HMS I/II 80:20 deal at $265/mt CFR, though this deal has not been confirmed by the buyer or the seller. Meanwhile, the latest short sea scrap bookings in Turkey including ex-Romania A3 grade scrap have been concluded at $365/mt CFR Marmara and at $267/mt CFR Aliağa.
Although Turkish long steel producers are still trying to gain a share of the limited demand in the global market, they are finding it difficult to increase their export sales. Meanwhile, a notification sent to the World Trade Organization (WTO) by the European Commission reveals that the room for Turkish long steel producers to increase their sales to the EU has closed further, though the EU market still provides a good opportunity for hot rolled coil (HRC) producers. As a result, in the coming period, Turkish HRC producers’ demand for scrap is expected to be more regular as compared to scrap demand from Turkish long steel producers. However, the Turkish long steel mills will likely limit their demand for scrap and make scrap bookings only to meet their immediate needs as long as they are lack opportunities in their domestic and export markets.