Turkish producers prefer short sea scrap purchases

Tuesday, 26 March 2019 16:00:21 (GMT+3)   |   Istanbul
       

Although some deep sea scrap deals were heard in Turkey last week, it is observed that a significant rise has been recorded in Turkish mills’ demand for short sea scrap. It has become difficult for Turkish mills to find their desired price levels among deep sea scrap quotations, while they are unwilling to conclude deep sea scrap bookings before gaining a clearer picture of the future outlook for the finished steel markets. As a result, Turkish steelmakers prefer to meet their immediate needs by concluding short sea scrap transactions with more attractive shipment dates, payment conditions and price levels. As Russian suppliers’ price levels are still on the high side for Turkish mills, the latter have instead completed their short sea purchases from the Adriatic region, Bulgaria and Romania. While Russian HMS I/II 90:10 scrap prices are at $320/mt CFR, which is higher than Turkish steel producers’ target prices as mentioned before, short sea scrap suppliers in the Adriatic region, Romania and Bulgaria are able to meet Turkish mills’ desired price levels. SteelOrbis has been informed that Turkish steelmakers have concluded many deals from these three locations in the range of $312-314/mt CFR.

Although Turkish steel producers seeking to buy deep sea scrap are still present in the market, it is noteworthy that they are in no rush to conclude purchases as they prefer to wait. With no problems seen on the supply side, deep sea suppliers are offering HMS I/II 80:20 scrap to Turkey at $323-326/mt CFR, but these levels are higher than Turkish mills’ target prices which do not exceed $320/mt CFR. Against the backdrop of weak rebar demand, particularly from their export markets, Turkish mills have lately been finding it more difficult to make clear predictions regarding the trend of their domestic rebar market, given the sharp fluctuations of the Turkish lira-US dollar exchange rate and also due to the influence of the local elections to be held on Sunday, March 31.


Similar articles

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

Baltic countries and Czech Republic seek EU ban on ex-Russia scrap imports

27 Mar | Steel News