Due to the sharp upward jumps recorded in import scrap prices in Turkey, it has become difficult for most market players to predict the next likely levels of prices. Last week, HMS I/II 80:20 scrap prices in Turkey first increased from $280/mt CFR to $292/mt CFR and were offered at $305/mt CFR in following days. However, as a result of the sharp rises seen in iron ore prices, HMS I/II 80:20 scrap quotations in Turkey moved up to $312.5/mt CFR in deals concluded on Friday, April 22.
Meanwhile, suppliers in the Black Sea region have quickly revised their scrap offers to Turkey, increasing their A3 grade scrap offers to $305/mt CFR, compared to $265/mt CFR at the beginning of last week.
Additionally, in the regions from which Turkey procures its scrap imports, scrap suppliers are hesitating to restock due to the sharp upward revisions in scrap collection quotations made in line with the price increases seen in the latest scrap deals. As a result, the sharp rises in scrap prices are causing both buyers and suppliers to be more cautious.
Following the import scrap deals concluded in Turkey on Friday, April 22, Turkish steel mills have maintained a cautious stance this week. Scrap suppliers, in particular Baltic-based suppliers, who were also in the market last week, have been closely observing the import scrap market in Turkey with the aim of concluding new sales, while also testing the market for higher prices. However, Turkish steel mills have rejected the new price offers. As a result, HMS I/II 80:20 scrap prices in the latest ex-Baltic deals have remained at $312.5/mt CFR.