The pressure on Turkish scrap prices seems to be increasing as Turkish producers were forced to further decrease their rebar quotes on Tuesday. However, suppliers are seen holding their offers firm after receiving respite with recent sales and in expectation of post-holiday price hikes.

Prices have softened on the latest UK-origin booking at $379/tonne cfr Turkey for HMS 1&2 80:20 and Venezuela-origin booking at $382.5/ cfr. Mills are nevertheless seen pushing for even lower prices and bidding at below $380/t cfr for premium HMS 1&2 80:20. However, even European suppliers do not find levels below $380/t cfr workable today amid a strong euro per dollar and firm dock prices, while US suppliers are seen offering at above $385/t cfr.

A Benelux supplier tells Kallanish: “You have to bear a loss if you sell at $380/t cfr. Under current conditions where there is almost zero flow at €310/t, further interruption in supply amid holidays, winter conditions, a strong euro and expectations for price rises after holidays, we are unable to decrease to these levels.”

On the other hand, mills do not find higher levels workable due to decreasing rebar prices, weak steel sales and already high production costs arising from energy tariffs.

Some mills were seen inquiring about short-sea scrap on Tuesday while a few have also inquired about deep-sea scrap.

One supplier says: “It [current market price] is a very critical threshold. Both higher and lower prices do not seem possible at the moment. Higher scrap prices are likely to lead to further production stoppages in the Turkish market as Turkey has already lost competitiveness in the global arena at current costs.”

A mill says: “Scrap prices are no longer following the trend in rebar prices. Our only hope is to see a revival in demand and recovery in rebar prices in the new year.”

Although Turkish mills’ requirements for January-shipment cargoes have not yet been met, they are seen trying to fulfil missing tonnages from the domestic and short-sea markets amid high imported scrap offers. However, short-sea offers are quite scarce at present.

Domestic rebar demand remained moderate on Tuesday while buyers pushed for lower prices. A western Turkish mill further decreased its price and sold rebar at $645/t ex-works, level with some re-rollers’ and stockists’ prices. Other mills’ offers stood at mostly above $650/t ex-works, while prices above $650/t barely found acceptance among buyers.