After intensifying their ex-
US scrap bookings last week, Turkish mills have started the current week in silence, opting to monitor market developments before concluding any new transaction. In the meantime, declines in finished steel prices both in global markets and also in the Turkish domestic market, coupled with slack demand, are posing difficulties for Turkish mills, causing them to remain cautious.
In the past couple of weeks, ex-
US scrap prices have followed a downtrend. Last week, after the price of ex-
US HMS I/II 80:20 had decreased to $375/mt CFR, many Turkish mills started buying, with a total of around 10 ex-
US HMS I/II 80:20 cargoes being sold to
Turkey at $372-375/mt CFR. In the meantime,
scrap prices have dropped in the
US domestic market in September, after the significant increases registered in August. The iron ore price drops observed in previous weeks (though followed by a sudden uptrend afterwards) have caused
scrap demand from Far Eastern mills to remain almost at a standstill and this has resulted in a halt in bulk
scrap sales off the
US West Coast and a significant slowdown in containerized
scrap shipments. The price idea of Turkish mills for ex-
US HMS I/II 80:20 this week is now below $375/mt CFR, even lower than $370/mt CFR.
On the other hand, no ex-
Europe scrap transaction has been heard in
Turkey in the past week. Ex-
Europe scrap suppliers have struggled against the sudden drops observed in ex-
US scrap prices and also due to the sudden strengthening of the euro against the
US dollar. However, ex-
Europe scrap suppliers are expected soon to push down their prices to current market levels.
In
Turkey, some ex-
Romania A3
scrap bookings have been recently heard at $360/mt CFR Nemrut port and at below levels, while new offers are standing at $363/mt CFR Marmara Sea ports and $365/mt CFR Nemrut port.
Scrap collection prices in
Romania are currently standing at $322-330/mt. It is reported that ex-
Russia A3
scrap prices are slightly higher than Romanian
scrap prices and it is observed that this is causing some difficulties for ex-
Russia scrap suppliers.
Although a nationwide urban transformation project has been already launched in
Turkey, the expectations for a revival in finished steel demand in line with this project have not materialized so far.