Having been reluctant to purchase import scrap from the beginning of July, Turkish mills’ scrap demand has recorded no recovery over the past week although they have concluded several deals in order to meet their immediate needs. Meanwhile, no problem is observed in the market in terms of scrap supplies, while many deep sea scrap suppliers are ready to make sales, though are obliged to wait due to the weakness of demand.
While demand for domestic rebar in Turkey is still slack as buyers have been postponing their bookings for a long time, rebar buyers in the global market also prefer to meet their needs from their domestic markets or from regions they consider to be safe from the impact of trade wars, and this situation has resulted in weak demand for Turkish rebar in the global market. Under these market conditions, Turkish mills are postponing their scrap bookings and are exerting additional pressure on scrap prices.
While prices of ex-US HMS I/II 80:20 scrap were at $342-344/mt CFR in the scrap deals concluded in Turkey last week, ex-Europe scrap prices decreased to $335.5/mt CFR in the deals concluded towards the end of the week. As for the current week, no import scrap deals in Turkey have been heard yet, while based on the market situation any eventual deep sea scrap bookings will likely be concluded at $330-340/mt CFR, while it seems difficult to foresee deals being concluded above $340/mt CFR.