After moving sideways for a brief period at the end of February, import scrap prices in Turkey had started to move up at the beginning of March. It is observed that the upward movement of import scrap prices in Turkey has come to an end in the current week as Turkish steel mills' demand for import scrap has slowed down. Following the ex-US scrap deals in Turkey concluded last week at $303/mt CFR, ex-St. Petersburg and ex-Denmark scrap transactions have been concluded in Turkey at $295/mt CFR and $300/mt CFR, respectively.
Although many scrap suppliers are seeking to conclude sales to Turkey, there is no tightness in Turkish steel producers' scrap inventories at the moment, and this has allowed them to slow down their demand for import scrap. It has been heard that Turkish mills are putting pressure on import scrap prices, while based on the most recent deals they are pressing for prices below $300/mt CFR. Although scrap suppliers' offer price ideas for HMS I/II 80:20 scrap are higher than $300/mt CFR, it is believed that deals may be concluded in the range of $295-300/mt CFR if suppliers receive renewed demand. Meanwhile, short sea scrap suppliers' offer ideas for Turkey are in the range of $275-290/mt CFR, depending on their region.
Even though Turkish steel mills are heard to be concluding new finished steel sales to their export markets, it is observed that they are finding it difficult to obtain their targeted price levels. On the other hand, the referendum to be held on April 16 in Turkey is an obstacle to the revival of domestic sales in the country. Under these circumstances, it is expected that Turkish steel mills, which have already slowed down their scrap purchases, will maintain their cautious stance towards purchases of scrap for another while.