Quotes for imported steel scrap have jumped up on the Turkish market amid scant inflow of imported scrap. Despite the ongoing decline in the segment of finished steel products, Turkish mills are ready to purchase scrap at higher prices to provide the production with the raw material during the coming month.
Prices for imported steel scrap are on the rise in Turkey despite the unfavorable situation on the markets of finished and semi-finished steel products. ISM sources have reported several fresh deals this week.
Negotiations for the procurement of imported scrap steel have intensified in Turkey after October 25 as local mills had been postponing purchases for too long, and now they face an urgent need in scrap with shipments in November to supply the production at their enterprises.
Demand for imported steel scrap is weak in Turkey. Most local mills refrain from purchases. They have to increasingly reduce offer quotes for their rebar amid almost dead sales. Steel scrap prices have plunged over the week.
Most Turkish steel mills are slow to purchase imported steel scrap given extremely dull sales of finished steel products. So, new deals are signed in case of providing significant discounts only.
Trade is weak on the Turkish steel scrap market. Producers of rolled steel still duffer sluggish demand for finished steel products, so they are slow to ink new deals for the procurement of imported scrap. Contracts are now concluded in case of an urgent needed only.
Turkish factories stepped up purchasing imported steel scrap on Friday. Before that date, however, they had been slow to enter into new deals amid dull sales of finished steel products.
Large Turkish metallurgical enterprises started actively buying imported steel scrap in the second half of August in order to replenish stocks of the raw material for September production.
Demand for imported steel scrap is muted in Turkey. Nevertheless, the corresponding prices have strengthened over the week. Local mills are very slow to accept the new price range due to dull home market of finished steel products.
Turkish importers of steel scrap refrain from active negotiations, pinning hopes that prices will keep going down further. Meanwhile, foreign scrap traders are sitting on the fence waiting for more favorable market environment. As a result, both parties are slow to enter into new deals.