Having concluded import scrap deals last week at $309/mt CFR and $310/mt CFR, Turkish steel mills’ demand for import scrap is at low levels at the beginning of the current week. Deals heard this week but actually concluded at the beginning of last week at lower prices compared to the transactions concluded in subsequent days of the same week have given rise to the mistaken perception that import scrap prices are falling. Although Turkish steel producers are seeking lower import scrap quotations for new deals, scrap suppliers are finding it difficult to reduce their offer prices to the levels desired desired by mills because of the extra costs caused by higher freight prices. Currently, an ex-US scrap cargo is being offered to Turkey at the average price level of $315/mt CFR.
Meanwhile, ex-Black Sea offers to Turkey for A3 grade scrap are at $295-300/mt CFR. Turkish steelmakers are in no rush to conclude new scrap purchases as they are experiencing difficulties in terms of finished steel sales both to their domestic and export markets, with no significant improvement seen in their sales.