Turkish scrap markets this week

The predicted increase in activity has not yet been seen in the Turkish scrap markets. Due to the market stagnation and the regression in long product prices, the Turkish mills have continued to defer their scrap purchases to a certain extent. Last week, only two bookings for deep sea scrap were concluded. It is heard that Turkish mills have not yet concluded their purchases for December loadings. It is also thought that the necessity of purchases for January loadings will slowly emerge. On the other hand, SteelOrbis has been informed that the inventory levels of deep sea scrap suppliers have declined, since the other markets are active in scrap purchases. Perhaps in connection with this, there haven't been many deep sea suppliers active in the Turkish scrap market this week. Another factor effecting scrap prices is the rapidly changing euro/dollar exchange rate. The euro has appreciated against the dollar, and this may result in a price increase in offers for deep sea scrap. The decline in the deep sea scrap supply, as well as the effect of the exchange rate, may cause a price increase in the offers coming from Europe and the US. The situation in the Black Sea region is still not promising. Russian producers increased their scrap procurement prices late last week. The possibility of Turkish mills finding Russian origin scrap ex-Black Sea at suitable prices has declined significantly due to the serious decrease in scrap supply allocated for export, the rise in freight rates and the problems regarding ship availability. In the coming period, the fact that these factors will be coupled with the heavy winter conditions will possibly make it difficult for the Turkish mills to obtain supplies of Black Sea scrap. In addition to all these factors, it is a matter of concern how the current inactivity of the Turkish mills regarding scrap purchases will affect the Turkish scrap markets. Right now, it wouldn't be wrong to say that it is highly possible that scrap prices will rise somewhat.