Imported scrap prices in Turkey remain more or less flat on the latest bookings, although suppliers are seeking higher values, notes Kallanish.

On Friday, a US-origin booking was heard in the market from earlier in the week. A Marmara mill bought a cargo at average $438.5/tonne cfr Turkey for shredded and bonus grade, where HMS 1&2 80:20 corresponds to around $419/t.

Mills are seen resisting higher scrap offers as they are struggling to sell steel, while their costs have already increased following metalworkers’ wage hikes. The market is thus debating whether suppliers will be able to achieve higher prices.

Although the latest deals from the US were done at $419-420/t cfr Turkey, US suppliers are seen seeking $425/t cfr and above, while UK and European suppliers aim to sell at above $420/t cfr.

In the short-sea market, suppliers, citing a lack of material, are seen aiming to sell at above $395/t cfr from Romania, while Turkish mills’ bids are mostly at below $390/t cfr.

One US supplier tells Kallanish that the US domestic scrap market remains firm, while the outlook for shredded is positive. “Next week, when Turkey’s demand improves, I am afraid Turkish mills will not be able to buy scrap at around $420/t cfr,” he added on Friday.

A mill, however, expects prices to remain rangebound at current levels and adds: “Steel prices are pressured and the outlook is not bright. Turkey cannot afford higher [price] levels for scrap.”

Most market participants seem to agree that Turkey’s demand will improve in the coming week and scrap prices will not fall. However, there is little scope for a significant increase either.

Demand in Turkey’s domestic rebar market was on hold on Friday following the loan rate hike by 250 base points on Thursday. Mills’ offers, however, stood elevated at $625-645/t ex-works.