A slight improvement was seen in Turkish mills’ demand for import scrap last week, which caused prices to give way to an uptrend. Although HMS I/II 80:20 scrap quotations were at $307/mt CFR in the deal concluded two week ago, Turkish steelmakers tried to conclude bookings at this and even lower levels later but failed to obtain their targeted price levels from scrap suppliers. As a result, deep sea HMS I/II 80:20 scrap prices were at $310-313/mt CFR in the transactions concluded last week.
Turkish mills continue to show demand for import scrap as they are lagging behind in terms of deals concluded for April shipments. However, many scrap suppliers are not offering cargoes to Turkey as they are still focusing on scrap collection to ensure timely shipment of tonnages within the scope of previously concluded deals, and also given higher scrap collection prices in the regions which are Turkey’s main sources of scrap. It is observed that a Turkish mill has offered $317/mt CFR for an ex-US HMS I/II 80:20 scrap cargo, which was at $313/mt CFR last week, but the supplier has not replied to this offer as it prefers not to conclude sales before seeing the anticipated price rise in the local US scrap market.
Import scrap quotations in Turkey are expected to move up against the backdrop of the current high levels of global iron ore quotations, the upward movements of global pig iron and pellet prices, and also due to the deals concluded at higher price levels by Far Eastern steel producers, while at the same time Turkish steelmakers’ demand for scrap for April shipments will be a determining factor for the trend of the scrap market in the coming period.