While Turkish mills continue to show demand for import scrap though without being aggressive, scrap suppliers are also observed to be sitting back. Following the scrap deals concluded in Turkey at $319-322/mt CFR last week, import scrap quotations in Turkey have continued to move up in the current week. Turkish steel mills consider the price range of $320-325/mt CFR for HMS I/II 80:20 scrap to be acceptable, while scrap suppliers are targeting higher levels and are holding back from voicing their offers in the market.
Last week, short sea A3 grade scrap bookings in Turkey from the Adriatic, Romania and Bulgaria were concluded at $310-312/mt CFR Marmara. It is observed that Turkish mills are trying to conclude deals at the same price range in the current week but scrap suppliers in these regions are targeting higher prices at around $315-320/mt CFR Marmara. Meanwhile, Russian suppliers are targeting price levels higher than $320/mt CFR for A3 grade scrap sales.
While Turkish steelmakers have increased their rebar prices both in their domestic and export markets in parallel with higher scrap quotations, they are still facing weak demand. Turkish steel producers are observed to be trying to meet international demand for billet and wire rod since it is stronger than international rebar demand. However, it is noteworthy that Turkish mills are forced to accept lower prices in actual export sales as compared to their initial offers due to fierce competition. In the meantime, Turkish mills’ scrap purchases for April shipments are still insufficient and so they are expected to continue to show demand for import scrap.