Turkish mills eye ex-Europe scrap after sudden weakening of euro against dollar

Making a quiet start to last week, the Turkish import scrap market saw increased activity with new bookings during the week. Although no new scrap transaction has been heard this week so far, it is thought that the sudden weakening of the euro against the US dollar may affect scrap prices.
 
Last week Turkish mills concluded several ex-US scrap bookings and in these transactions prices of HMS I/II scrap were in the price range of $466-469/mt CFR. While there has not been any ex-US scrap transaction heard so far this week in Turkey, market players state that a likely drop in ex-Europe scrap prices may also push down ex-US scrap prices as well.
 
This week, a Turkish steel producer has concluded a booking of a single cargo of ex-UK scrap, consisting of 15,000 mt of HMS I/II scrap and 5,000 mt of shredded scrap at $464/mt CFR. Since last week's scrap booking in Turkey  for an ex-continental Europe scrap cargo composed of HMS I/II 75:25 scrap and shredded scrap at the price level of $448/mt CFR, no new scrap booking has been heard. In the meantime, the weakening of the euro against the US dollar has caused a lowering of Turkish mills' price idea for their possible scrap bookings from this region. SteelOrbis has learned from market insiders that Turkish mills are not inclined to show interest in offers for HMS I/II 80:20 scrap at above $450/mt CFR.
 
Last week, many ex-Black Sea scrap transactions were concluded in Turkey at $455-460/mt CFR. Meanwhile, this week it is heard that although ex-Romania A3 scrap offers to Turkey are at $460/mt CFR, the price idea of Turkish mills is not above $455/mt CFR.
 
Although the rebar price hikes observed in the Turkish domestic market are expected to revive the scrap demand of Turkish producers, there has not been any intensive scrap demand so far. The expectation for a possible price decline in ex-Europe scrap prices due to the sudden weakening of the euro against the US dollar has caused all eyes to turn towards the European scrap suppliers.