While Turkish steel mills’ demand for import scrap has increased as of the start of 2019 with mills concluding several deals in line with their ongoing needs, Turkish flat steel producers are more aggressive as regards import scrap purchases as compared to their long steel counterparts.
Last week, ex-Baltic and ex-US HMS I/II 80:20 scrap deals were concluded in Turkey in the range of $277-282/mt CFR. Although scrap suppliers have been testing higher offer levels in the current week, they are observed to be experiencing difficulties in gaining acceptance from Turkish long steel producers who are not very aggressive in their import scrap purchases.
As regards shot sea scrap, Russian suppliers’ price offers have not coincided with Turkish mills’ expectations. SteelOrbis has been informed that Turkish steelmakers concluded several transactions from Romania and Bulgaria last week for A3 grade scrap at $265-267/mt CFR. In the current week, short sea scrap suppliers are also testing the market with higher offer prices, though the new price levels are unlikely to be accepted by Turkish long steel mills.
As they have been receiving more finished steel demand as compared to Turkish long steel producers, Turkish flat steel mills’ demand for import scrap is stronger and they are expected to continue to conclude new transactions in the current week.