Scrap purchase activity in the Turkish market is observed to have slowed down very significantly. Although scrap price levels of above $300/mt CFR Turkey have been accepted by the producers as a reality, it seems that they are finding it difficult to accept price levels of above $310/mt CFR Turkey.
While scrap prices have increased significantly in the US domestic market in December, there are strong expectations regarding a further scrap price increase in January. Besides the upcoming Christmas and New Year holidays, the winter conditions and strong local demand in the US indicate that the tightness in scrap availability will be maintained for a while. This general situation in the US means that strong US scrap prices in Turkey will likely continue to be seen. It is heard that ex-US HMS I/II 80:20 scrap prices have this week been at $320-325/mt CFR Turkey.
Meanwhile, ex-Europe HMS I/II 70:30 scrap prices have this week been at around $310-315/mt CFR Turkey.
It is heard that there are ex-Black Sea offers for A3 grade scrap at the price level of $315/mt CFR Marmara; however, Turkish producers' price idea for this material is currently at below $310/mt CFR.
It is thought that the producers may return to the market this week and/or next week, since there is currently less than two weeks left before the holidays, which start the weekend after next. It is expected that they will at least want to satisfy their short-term needs, although they are not likely to buy large tonnages. However, considering the finished steel side, it is very likely that they will proceed with considerable caution.