Will Turkish mills’ resistance bring down scrap prices?

Turkish steel mills have halted their scrap purchases once again, leading some market players to anticipate a decline in scrap prices. However, international scrap suppliers indicate that a scrap price drop is unlikely to occur for now.
 
For the time being, ex-US scrap prices have still remained above Turkish mills' price idea. SteelOrbis has learned from market sources that, while ex-US HMS I/II 80:20 scrap offers to Turkey stand at $460/mt CFR, Turkish steel producers are not ready to pay this price yet considering actual finished steel prices.
 
Last week, ex-Europe scrap offers to Turkey for HMS I/II 75:25 were at $437/mt CFR, while offers for HMS I/II 80:20 were standing at $445/mt CFR, with offers for HMS I scrap at $450/mt CFR. Although the rise of the euro against the dollar exerts pressure on European scrap offers, SteelOrbis has learned that these offers are still valid this week.
 
Ex-Black Sea A3 scrap prices vary depending on the region. Russian A3 scrap offers to Turkey stand at $445-450/mt CFR, ex-Romania A3 scrap offers are at $440-445/mt CFR, while Bulgarian A3 scrap offers to the Turkish market stand at $435-440/mt CFR. However, Turkish mills' price idea has remained quite below these levels. SteelOrbis has learned from scrap suppliers that Turkish steel producers' counter offers for ex-Romanian A3 scrap offers have been at $430/mt CFR, while their counter offers to Bulgarian prices have been at $420/mt CFR.
 
The new US domestic scrap prices for March expected to be announced this week are also likely to shape the Turkish scrap market. Since Turkish steel mills and international scrap suppliers have different price expectations, no new scrap bookings have been concluded lately in Turkey.