Even though import scrap transactions are still being heard, scrap demand in Turkey is still very weak and buyers are in no rush to conclude deals. Due to the weakness of demand, import scrap prices in Turkey have decreased to $304/mt CFR in late last week from the price level of $315/mt CFR seen in early last week. Although ex-Baltic offers to Turkey for HMS I/II 80:20 scrap are currently at $310/mt CFR, Turkish buyers’ desired price levels for new scrap bookings are below $300/mt CFR.
Meanwhile, domestic rebar sales in Turkey are still very sluggish, with the influence of the volatility seen in the Turkish lira-US dollar exchange rate resulting from the political crisis between two countries observed in early last week. Also, no significant recovery has been observed in Turkish finished steel sales to export markets. Due to the current market circumstances, recent import scrap bookings of Turkish mills, which were being postponed for a long time, are cannot be viewed as a signal for a recovery in finished steel sales. In short term, Turkish mills are expected to continue making scrap bookings only to meet their immediate needs until an improvement is observed in domestic and export sales.