Activity in the Turkish scrap market has resumed post-Eid holiday.

A Marmara long steel mill bought two cargoes, from the EU and the US on Monday. The US cargo comprises HMS 1&2 85:15 at $381/tonne, and shredded and bonus at $399/t cfr, with HMS 1&2 80:20 corresponding to $378.5/t cfr Turkey. The European cargo was concluded at around $369/t cfr for HMS 1&2 80:20.

A southern Turkish mill is heard to have concluded a St. Peterburg-origin HMS 1&2 80:20 booking at $369/t cfr, although the seller says this was done before the holiday. Although there are rumours of a Baltic-origin sale, this was yet to be confirmed at the time of publication.

The US deal points to an almost stabilisation in prices as the previous sale at the beginning of last week was concluded at $379/t cfr for HMS 1&2 80:20. Although the European cargo points to a significant decrease, with the previous EU-origin deal concluded at $378/t cfr, it confirms that the previous cargo was overpriced, as reported earlier by Kallanish. Although other European suppliers also tried to sell at $378, no supplier has managed to sell since then.

In the short-sea market, meanwhile, Romania-origin HMS 1&2 80:20 is traded at $354/t cfr Turkey, with this also pointing to a decrease in prices compared to pre-Eid levels.

The fresh deals have confused both Turkish mills and scrap suppliers. While Turkish mills find the US levels high, other US suppliers are finding them low.

One US supplier tells Kallanish: “The company I represent refuses to sell at these levels. It seems we will not be able to conclude any sales this summer.”

A Turkish mill says: “Scrap prices, which are very high, are preventing Turkish mills from competing in the global arena. They should be much lower. On the other hand, energy prices are expected to increase in August. Under current conditions, where domestic rebar prices are falling, Turkish mills should not rely only on the domestic market and we have to regain our export markets; we are moving away from being able to make this happen.”

Although Turkish demand is yet to improve, suppliers are seen expecting more mills to return to the market this week. However, sluggish steel sales are causing mills to remain cautious with their scrap purchases.

The rebar market remained stagnant on the second business day after the long holiday, causing prices to fall sharply. Some mills in the south decreased their offer prices to $600/t ex-works, while some kept them above $630/t. Prices as low as $585/t were available from stockists that are having difficulties in obtaining loans, however.