Turkish scrap market remains quiet in anticipation of price decline

The Turkish scrap market has remained quiet amid the decline in finished steel prices in the last couple of weeks. While there has not been any ex-deep sea scrap booking heard lately, domestic scrap prices in Turkey have shown decreases.
 
Lately, there has not been any ex-US scrap booking in Turkey. SteelOrbis has learned that until last week US scrap suppliers were insisting on the price level of $480/mt CFR for HMS I/II 80:20 scrap. However, this price level is not acceptable for Turkish mills given the current market situation. Thus, Turkish mills will likely delay their bookings, until they find a price below $480/mt CFR that will meet their expectations.
 
On the other hand, ex-Europe scrap prices are observed to have declined. Last week, an ex-Europe HMS I/II 70:30 scrap offer for the Turkish market was heard at $439/mt CFR. When compared to the most recent ex-Europe scrap booking at $459/mt, a significant price decline can be clearly seen.
 
Ex-Romania and ex-Russia A3 scrap offers have remained above Turkish mills' price expectations. Following the freight rate increases of $8-10/mt for ex-Russia routes and $5-6/mt for ex-Romania routes, scrap suppliers in this region are facing difficulties in reducing their prices. While ex-Russia A3 scrap offers are at $465/mt CFR and ex-Romania A3 scrap offers stand at $460/mt, the price idea of Turkish mills does not exceed $450-455/mt CFR. In the meantime, the scrap collection price in Romania stands at $425/mt.
 
This week, many European and US scrap suppliers are reported to be in Turkey, where they are conducting intensive negotiations with Turkish mills. These scrap suppliers, who have not offered any price lately due to the lack of buyers in the market, are expected to conclude some transactions at lower prices that will meet buyers' expectations. While Turkish steel producers need to buy scrap, there is not any shortage on the supply side.