As Chinese producers' finished steel export offers have lately become more aggressive, Turkish mills' competitiveness has diminished and their sales have slowed down significantly. Under these circumstances, Turkish steel mills'
scrap purchases have nearly ground to a halt as they are unable to foresee the near future of the market.
Last week, no ex-
US scrap transaction was concluded in
Turkey. Moving to this week, although some ex-
US scrap suppliers have reduced their HMS I/II 80:20 offer prices for
Turkey to $402-405/mt CFR, these lower offers have failed to gain acceptance among Turkish mills, whose price idea is at about $390-395/mt CFR. However,
scrap suppliers are unable to reduce their prices to this level for the time being.
For ex-
Europe scrap, the situation is more problematic. On one hand, the strengthening of the euro against the
US dollar is posing difficulties for
scrap suppliers, while on the other hand weak demand is exerting downward pressure on
scrap prices. In the meantime, it is heard that many ex-
Europe scrap suppliers are paying visits to their Turkish customers nowadays, hoping to conclude new bookings.
Turning to the Black Sea market, ex-Black Sea
scrap prices are varying depending on the region. While ex-
Bulgaria A3
scrap prices for the Turkish market are standing at $375-380/mt CFR, Turkish mills are also seeking similar price levels for ex-
Romania and ex-
Russia scrap offers. However, unable to give offers as low as prices for Bulgarian
scrap, ex-
Russia scrap suppliers are having difficulties even in offering the price level of $395/mt CFR. On the other hand,
scrap collection prices in
Romania are at $345-350/mt.
The recent steep declines in iron ore prices, resulting in Chinese mills' increased competitiveness in the global finished steel market with their aggressive export offers, has raised anxiety levels among the Turkish mills. As a result, Turkish mills prefer to delay their
scrap bookings as much as possible, seeking to catch lower prices as compared to actual market levels.