Since last week, developments in relation to Chinese prices have caused apprehension in the global steel markets, leading to a slowdown in trading activity. In this context, in the past week Turkish mills'
scrap purchasing activities have been negatively influenced by the declines seen in Chinese export prices for finished and semi-finished steel and also by the downward movement of iron ore quotations despite the rapid rises seen in Australian coking coal prices following Cyclone Debbie.
With iron ore inventories in China still at high levels, iron ore prices have declined due to the slower demand. On the other hand, domestic demand for finished and semi-finished steel in China has not yet reached levels which would make inroads into the high levels of domestic steel inventories, causing Chinese suppliers to focus on exports and to reduce their steel export prices. The uneasiness caused by the reemergence of Chinese suppliers in the global markets has also affected Turkish steel mills. As a result, after concluding several
scrap deals last week, Turkish steel producers' import
scrap purchases have come to a halt in the current week. The developments in regard to Chinese steel exports are expected to exert downward pressure on
scrap prices in the short term, while it is thought that Turkish steel producers will no longer agree on paying the price levels they had accepted last week, which had reached $276/mt CFR for HMS I/II 80:20
scrap.