Turkish mills’ demand for scrap halted on Friday following numerous bookings during the week and an increase in the number of offers.

Suppliers are finding the latest booking levels workable and are willing to sell at these levels. However, mills, facing an increase in the number of offers and struggling to sell steel at higher prices, have backed off from the market. This makes most market participants think that scrap prices have peaked and further rises do not seem likely.

While premium HMS 1&2 80:20 prices approached $420/tonne cfr levels in the latest bookings, short-sea scrap prices rose to $400-403/t cfr levels.

On Friday, a US-origin deal at $417/t cfr for HMS 1&2 80:20 was heard in the market. However, it is confirmed to have been booked on Tuesday. On the other hand, a southern mill is heard to have booked EU-origin cargo at an average $414/t cfr.

A Turkish mill tells Kallanish: "On Thursday night, I received offers from various suppliers. They are willing to sell premium HMS 1&2 80:20 at around $420/t cfr levels. But I doubt these levels in new bookings amid the current situation where scrap supply outpaces Turkey’s demand."

"Turkey is likely to halt imported scrap purchases and focus on steel sales now. If they can sell a sufficient amount of steel at current levels next week after buyers return from holidays, they may continue to buy scrap. But they initially need to gauge steel sales,” says a trader.

Turkish mills further increased shipbreaking scrap buying prices on Friday, meanwhile. They rose to $385-400/t delivered levels from $385-390/t a day earlier.

While European mills are expected to start domestic scrap buying activities next week, the trading has already kicked off in the US. Domestic mills’ buying prices in both regions are likely to increase by more than $20-30/t depending on the grade and region.