Having limited their scrap bookings in the first half of December, Turkish steel producers stepped up their scrap purchases after accepting the rises recorded in import scrap prices before the Christmas holiday. Although Turkish steel mills concluded plenty of ex-Europe and ex-Baltic scrap deals, only one ex-US scrap transaction was heard in this period as US-based suppliers' scrap prices were much higher than the prices offered from other regions. In these import scrap deals in question, ex-UK HMS I/II 80:20 scrap prices were at $288/mt CFR, ex-Baltic HMS I/II 80:20 scrap prices were at $287-290/mt CFR, while ex-US prices for the same grade of scrap were at $296/mt CFR.
In the current week, no new import scrap transaction has been heard in Turkey amid the weakness of demand coming from Turkish steel mills and due to the Christmas holiday which ended very recently with some foreign scrap suppliers leaving the market for a longer holiday by combining the Christmas and New Year holidays. However with the expectations of a further rise in the local US scrap market in the January buy cycle, ex-US scrap offers to Turkey are not expected to be lower than $300/mt CFR. Meanwhile, European steel producers who had slowed their scrap purchases ahead of the holidays and the new fiscal year are expected to step up their scrap bookings after the New Year holiday. As a result, import scrap prices in Turkey are not expected to soften at the beginning of 2017.