War in Libya halts Turkish mills’ scrap bookings

This week Turkish steel producers' demand for scrap has been weak again, following a week when they concluded no scrap bookings. Turkish steel producers are not currently in the scrap market for new purchases, besides which scrap suppliers are unwilling to give offers. In this context, it is impossible for the time being to see actual scrap prices.
 
In the Turkish market, it is thought that ex-US HMS I/II 80:20 scrap offers, which were at $465/mt CFR in previous weeks and failed to gain acceptance, may have regressed now. Furthermore, SteelOrbis has heard that, if some demand is registered from Turkish steel producers, scrap transactions could be concluded at as low as $455-460/mt CFR.
 
On the other hand, European scrap suppliers are facing difficulties due to the strengthening of the euro against the US dollar. Although European scrap suppliers' offers of HMS I/II 80:20 scrap to Turkey have reached over $445/mt CFR, this price level is unlikely to gain any acceptance in Turkey for the time being. If the euro strengthens further against the US dollar, European scrap suppliers may face even greater difficulties in their scrap sales.
 
Recently, only a few ex-Black Sea scrap transactions have been concluded in the Turkish market. It is reported that scrap yards in Romania are trying to reduce scrap collections costs to the level of $400-405/mt. Romanian scrap suppliers indicate that an ex-Romania A3 scrap transaction to Turkey has been concluded at below $440/mt CFR, and thus scrap collection costs must have declined in Romania.
 
Turkish steel mills' scrap bookings for April have been quite scarce. In order to ensure sustainability of production, it is predicted that these mills will start their scrap booking activity by next week at the latest, if not this week. However, the continuing political turmoil in North Africa and the Middle East makes it crucial for these producers to move cautiously as regards scrap bookings.