The Turkish import scrap market made a slow start to last week in terms of activity, though toward the end of the week some bookings were concluded, mainly from the Baltic region, the US and Europe. In last week's import scrap transactions, an ex-US deal was concluded at $374/mt CFR Turkey for HMS I/II 85:15, while an ex-Baltic HMS I/II 80:20 scrap booking was concluded in Turkey at $371-374/mt CFR. Meanwhile, European HMS I/II 80:20 scrap deals have been transacted at $372/mt CFR. These transaction levels have indicated a decline of $2-3/mt as compared to previous deal levels. As for this week, no new deal has been heard so far in the import scrap market in Turkey.
Having completed their purchases for June shipments, Turkish steelmakers are expected to start buying new materials for July in the coming days. Turkish buyers have been looking for lower-priced scrap offers than current levels, as domestic scrap quotations in the US market have been cut by $10/mt and as demand for Turkish finished steel product exports has remained on the weak side. In addition, the sharp $4-5/mt decline recorded on May 30 in iron ore prices, which have been trending downward for a while, has increased the pressure on scrap prices.