The downturn in scrap prices which started in the Turkish market during the second week of January is beginning to have a direct impact on steel prices globally. While it is too soon to say whether a long downward trend has started or if the current correction is merely temporary, the change in sentiment in the longs market is already tangible.

Despite the recent correction, Turkish scrap prices remained at a record level and it is likely that these will continue to be supported throughout this year by the new opening of the Chinese market to imports from the beginning of 2021.

BLACK SEA BILLETS
Black Sea billet prices continued to sleep last week amid the ongoing scrap and long product price corrections, with offers being adjusted accordingly. China's somewhat strengthening long products sentiment has induced some confidence into sellers, but buyers remain wary of accepting tabled offers.

Indications from CIS mills and traders have reached $570-580/tonne fob Black Sea, with some tonnages contracted in the Mediterranean region at these levels earlier last week. But these were scarce and small in volume, traders note, with the overwhelming majority of buyers remaining on the fence.