Turkish mills await discounts before concluding new import scrap bookings

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.