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.