Although steel producers and scrap suppliers came together at the SteelOrbis Spring 2018 Conference & 78th IREPAS Meeting held in Warsaw last week and held many meetings, the number of deals concluded as a result of these meetings was limited. Just one ex-US HMS I/II 80:20 scrap deal was observed to have been concluded by Turkish mills, with the price increasing from $353/mt CFR recorded in the previous week to $357/mt CFR. Accordingly, scrap suppliers in the US and the Baltic region raised their HMS I/II 80:20 scrap offers to Turkey to levels of $360/mt and higher.
As the Turkish lira’s depreciation against the US dollar has gained speed in the current week, it is observed that Turkish steel producers have increased their domestic rebar prices. While the rapid movement of the exchange rate has caused apprehension amongst buyers in the local Turkish rebar market, the cautious mood resulting from the investigations initiated by the US and the EU has made it difficult for Turkish mills to conclude rebar sales.
This situation has impacted Turkish mills’ appetite for scrap purchases, with demand for import scrap in Turkey observed to have made a slow start to the current week. In the only import scrap deal heard since the beginning of this week, ex-UK HMS I/II 80:20 scrap and shredded scrap have been sold to Turkey at $345/mt CFR and $366/mt CFR, respectively. Additionally, HMS I/II 80:20 offers from the Baltic region and the US to Turkey have maintained their levels of $360/mt CFR and higher in the current week, while it is believed that Turkish steelmakers will try to push prices down below these levels if they want to conclude new purchases.