Sharp drop in iron ore prices puts pressure on Turkish scrap market

Tuesday, 18 November 2014 17:13:01 (GMT+3)   |   Istanbul
       

In the Turkish import scrap market, prices have continued their declining trend over the past week. Ex-deep sea HMS I/II 80:20 scrap prices have decreased by $22/mt over the past two weeks to $295-300/mt CFR Turkey. On the other hand, iron ore prices have fallen by a sharp margin of $2-4/mt today, November 18, depending on the ore quality, increasing the possibility of a continuation of the negative trend of scrap prices. Meanwhile, market sources state that Turkish producers have concluded several scrap deals over the past two weeks but they do not want the deals in question to be reported.
 
The negative trend of finished steel prices in Turkey's domestic and export markets which is unlikely to end in the short run has put additional downward pressure on scrap prices. This situation causes scrap prices to decline on a daily basis, while Turkish producers are trying to preserve their profit margins by cutting production rates. In the meantime, scrap suppliers state that prices are unlikely to firm up without an improvement first being seen in the finished steel market.

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