It is thought that import
scrap transactions of Turkish steelmakers will gain momentum as some steelmakers still need to buy
scrap. Even though the past week has been relatively quiet in terms of new
scrap purchases, a few import deals have been concluded. Over the past week, a Canadian
scrap supplier, who had been absent from the market since June, has returned to the Turkish market and concluded two successive
scrap sales to Turkish buyers. In these deals, a mixed cargo composed of HMS I
scrap, shredded
scrap and bonus grade
scrap has been transacted at average price levels of $355-336/mt CFR, while an ex-St. Petersburg HM I/II 80:20
scrap transaction has been concluded at $329-332/mt CFR, declining by $2-3/mt as compared to the previous deal concluded one week earlier.
It is seen that imports
scrap transaction levels have softened by just $2-3/mt in the past week, following previous sharp declines. Having failed to obtain the price levels they were seeking, Turkish mills have postponed their
scrap purchases and may start to buy import
scrap again if they can get good prices from the foreign
scrap suppliers. Meanwhile, Australian 61.5 percent iron ore quotations have fallen below the $80/mt CFR China mark. In addition, Turkish steel mills are still facing a lack of demand in the export markets for their rebar offers. All these circumstances seem to provide support for Turkish steelmakers' efforts to obtain discounts in their
scrap purchases.