Uncertainty continues in Turkish scrap market despite rumors of further deals

Uncertainty has continued to prevail in the Turkish scrap market. After the conclusion of two ex-UK deals for HMS I/II 80:20 scrap at $390/mt CFR Turkey early this week, rumors of conclusions of further transactions have increased. Lately, a rumor for an ex-US deal for a HMS I/II 80:20 scrap cargo at $395/mt CFR has been denied by market sources and indeed the sources do not believe the scrap transaction in question can be concluded above the price level of $390/mt CFR in current market conditions.
 
According to market sources, a Canada-based scrap supplier has offered a high quality mixed scrap cargo composed of shredded scrap, HMS I and bonus scrap to a Turkish mill at the price level of $400/mt CFR, though as a result of ongoing negotiations the price level may drop down to the range of $395-400/mt CFR. Meanwhile, the price/quality relation in this scrap offer is expected to have a downward impact on other offer prices. On the other hand, market players state that, with the sluggishness and ongoing downward price trend in the Turkish finished steel market, one needs to be brave to purchase scrap at the moment.