Following the many scrap deals concluded over the past weeks, it is observed that Turkish steel mills have started the current week at a slower pace in terms of import scrap purchases. Although many deep sea scrap offers are heard in the market for March and April shipments, Turkish mills’ appetite for new deals is lower than in previous weeks. At the same time, it is to be remarked that Turkish mills are trying to achieve earlier shipment dates for previously concluded scrap purchases.
SteelOrbis has been informed that deep sea HMS I/II 80:20 scrap offers to Turkey are currently at $335-340/mt CFR, but Turkish mills are unwilling to conclude bookings at this range which is higher than last week. It is also observed that some Turkish producers are still concluding short sea scrap transactions, though others are not interested in short sea offers. In the most recent deals, A3 grade scrap prices were at $320-325/mt CFR Turkey, while Russian HMS I/II 90:10 scrap was bought at $327/mt CFR Turkey. Today, February 12, scrap offers are observed to be at slightly higher levels. Meanwhile, the slower pace of Turkish steelmakers’ demand for scrap is also felt in the short sea scrap market.
With China returning from its New Year holiday, iron ore prices increased by $6/mt yesterday, February 11 - the first work day after the holiday- but decreased again by $3/mt today. Additionally, finished steel prices in the Chinese steel futures markets have also moved down today. Moreover, it is noteworthy that domestic quotations of some long steel products in China have decreased today. After the long holiday, the future trends of demand for and prices of finished steel in China is very important for the international markets. Having already concluded many scrap bookings, Turkish mills are also waiting to see how the developments in China will affect their own finished steel sales. Although there are many suppliers in the market trying to conclude scrap sales to Turkey, the slower demand from Turkish producers is exerting pressure on prices. As a result, Turkish mills are unlikely to accept the current price levels which are higher as compared to last week.