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.