While Turkish steelmakers’ demand for scrap has been slow for a long time now against the backdrop of their lower capacity utilization rates which have reduced their need for scrap, it is observed that this is causing scrap prices to fall further as the downward pressure on scrap quotations is rising. As deep sea scrap prices to Turkey decreased to $285/mt CFR last week, short sea scrap prices to the same destination were as low as $280/mt CFR. In the current week, scrap suppliers are seen to be trying to stay away from the markets due to the weakness of demand received from Turkish mills, though several suppliers are seeking to conclude sales at $285/mt CFR Turkey. However, SteelOrbis has been informed that Turkish mills’ price expectations are below the level of $280/mt CFR.
Amid difficulties in their finished steel export sales due to import duties, quotas and antidumping duties in several important export markets, Turkish steel producers are aiming to gain a clearer picture of the situation regarding their finished steel and billet sales before concluding new scrap transactions. Many Turkish mills are planning to meet European buyers at the Made in Steel Expo in Italy since they are aiming to conclude sales to Europe for the EU quotas due to be opened in July; however, European buyers are worried that the quota for Turkish steel may be filled in one day, as happened before since it was not possible to track the volume of tonnages sold. As a result, it is observed that European buyers do not have much appetite for purchases of Turkish steel at present. Meanwhile, buyers in the Far East are reluctant to conclude new purchases as they want to see the result of the new tariffs imposed by the US and China and the impact of this rise in duties on the steel markets. Under the current circumstances, lacking support given the absence of a recovery in their domestic finished steel demand, Turkish mills’ demand for scrap is expected to remain limited.