Scrap prices in Turkey have declined, as expected by market participants.

Four bookings by a southern mill from last week were heard in the market on Tuesday. A US-origin scrap supplier sold HMS 1&2 80:20 at $419/t cfr and a UK-origin supplier sold the same grade at $413/t cfr while two European suppliers sold it at $410/t cfr last week. 

Considering that price of US-, EU- and UK-origin HMS 1&2 80:20 was at $428/t, $420/t and $419/t cfr respectively on the previous bookings done at the end of the week through 8 December, these deals point to an actual decline in Turkish imported scrap prices.

A supplier tells Kallanish: ”Although I thought a correction was likely, this decline is above my predictions. I was not expecting US-origin HMS 1&2 80:20 price to fall below $420/t cfr.”

On Tuesday, scrap demand is mostly lacking while only a Marmara mill is heard inquiring about a January shipment cargo.  

Short-sea scrap trade has remained quite weak for two weeks. Following a booking at $409/t cfr at the end of the week through 8 December, the latest booking from the Adriatic was concluded at $405/t cfr on 15 December. A mill source says Romanian scrap is sold in the $390s.

While current price declines do not surprise market players, most expect a recovery in prices in Turkey’s resumption of demand, expected in early January.  

A Baltic-origin scrap supplier says: ”We might see even lower levels this week as demand is still sluggish. But Turkey’s February shipment requirements are largely missing and prices will recover once Turkey returns to the market to meet them.”

Turkish mills, suffering from weaker rebar prices and low sales, however, doubt this and find an increase in scrap prices in the near term unlikely.

On Tuesday, Turkish rebar producers’ official offers remain unchanged at $595-630/t ex-works although they offered discounts of $5-10/t amid weak demand.