Turkish mills purchase less scrap than expected

Tuesday, 18 October 2011 15:21:58 (GMT+3)   |  
       

The steel markets are still facing instability, and thus Turkish mills are very cautious as regards concluding new scrap bookings, preferring to delay their purchases until the last moment.
 
It is heard that last week ex-US HMS I/II 80:20 scrap offers to the Turkish market were at $445/mt CFR at first. However, following negotiations prices came down to $441-442/mt CFR. In the meantime, SteelOrbis has learned that an ex-US transaction has lately been concluded to Turkey, with the price of HMS I/II 80:20 at $441/mt CFR.
 
The restrengthening of the US dollar against the euro has not had much influence on ex-Europe scrap prices. The instability in the European economy, as well as the stagnancy in the markets, is preventing European scrap suppliers from increasing their prices. In the latest transaction heard, ex-Europe HMS I/II 75:25 for Turkey was at $415/mt CFR, indicating no change as compared to last week's price level.
 
As for ex-Black Sea A3 scrap, offers may vary. Last week, ex-Russia A3 scrap offers to Turkey, which had initially regressed to $409/mt CFR, increased up to $420/mt CFR towards the end of the week, as the number of scrap suppliers ready to offer $409/mt CFR had decreased. As of today, there are still a few small tonnage ex-Russia A3 scrap offers to Turkey at $415/mt CFR, while most suppliers are offering at $425/mt CFR Turkey. In the meantime, ex-Romania A3 scrap offers to Turkey stand at $425/mt CFR.
 
Currently, Turkish mills' finished steel sales lack strength. Today, finished steel prices in the Turkish domestic market have declined, despite the strengthening of the US dollar against the Turkish lira, and this has raised concerns in the market. In Turkey's finished steel export markets, buyers are still delaying their purchases as they consider that prices have yet to reach the bottom. As a result, Turkish steel producers are behaving more cautiously in their scrap purchases and this is increasing the pressure on scrap prices.

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