The import scrap market in Turkey is still quiet, with no new import scrap booking being heard over the past week, while Turkish steel producers are currently unwilling to conclude new scrap purchases due to the slackness of their finished steel sales in both local and export markets.
Turkish steel mills state that actual current offer price levels for scrap are not so important, while their main focus is to observe developments in finished steel sales. Although scrap supply is sufficient and many suppliers have scrap cargos ready for sale, due to Turkish steel producers' unwillingness to conclude new transactions scrap suppliers are not giving offers to Turkey.
Meanwhile, import scrap prices in Turkey have declined compared to price levels recorded in the latest deals concluded two weeks ago. However, scrap suppliers indicate that it is currently not possible to state a specific price range as there are no ex-deep sea offers or deals heard in Turkey. Additionally, scrap suppliers inform SteelOrbis that under the current circumstances Turkish steel producers would find it difficult to accept price levels even at $280/mt CFR for ex-deep sea HMS I/II 80:20 scrap and that the steel producers would prefer to wait and see instead.
There are ex-Black Sea offers for small tonnages of scrap below $265/mt CFR, but they have failed to spark interest among buyers. Also, ship scrap quotations in Turkey are now below $245/mt ex-yard, but ship scrap sales have ground to a halt.
In the meantime, in Ukraine - one of Turkey's sources of import scrap - President Petro Poroshenko has vetoed the draft law aimed at increasing Ukraine's export duty on scrap to €30/mt ($34/mt) from €10/mt ($11/mt). Ukraine's cabinet of ministers is now working on making the necessary adjustments to the law in line with the president's suggestions. For now, the €10/mt export duty on scrap will remain in effect.
Meanwhile, Chinese billet offers to Turkey are currently in the range of $325-345/mt CFR. While import scrap price levels in Turkey will become clearer with the next scrap transaction, it is mostly believed that the new price level for HMS I/II 80:20 scrap will be below $300/mt CFR.
€1 = $1.13