Most Turkish mills' domestic scrap buying prices have remained unchanged from last week, while import prices softened amid weak buying interest.
Only one southern Turkish mill decreased its buying price this week after raising last week.
No confirmed scrap import deals have been heard since the beginning of the current week.
However, business activity, which was on hold for a week, is seen to have resumed slightly on Wednesday, with scrap suppliers and mills starting to check each other's positions.
While it is estimated that Turkey needs to buy another ten cargoes for November shipment, producers say the number of available cargoes in the market is sufficient to meet this requirement. Mills are meanwhile yet to buy a cargo for December shipment.
Some European suppliers are seen targeting to sell HMS 1&2 80:20 at above $365/tonne cfr Turkey. However, the availability of offers in the low $360s from the same region is challenging those suppliers.
A Turkish mill tells: “There is no alternative market to sell these cargoes to. The European domestic scrap market is struggling and the euro continues to weaken against the dollar. Given that $367/t cfr was sold from the EU early last week, I would say that EU-origin HMS 1&2 80:20 prices should not be above $360/t cfr today."
Amid weakening rebar prices and stagnant sales, Turkish mills are seen pressuring scrap values. Although most suppliers are resisting further declines, the availability of stressed cargoes in the market is likely to influence the direction of the market.
Some US and Baltic suppliers, hoping to sell at above $370/t cfr, were heard asking for bids rather than placing offers on Wednesday.
Meanwhile, panic is being observed among domestic stockists and mills after demand halted. Although rebar prices remained unchanged on-day at $615-630/t ex-works on Wednesday, suppliers are seen to have offered significant discounts to attract interest. However, prices declines are preventing buyers from rushing to conclude purchases. Even Kardemir only managed to conclude limited sales despite offering attractive payment terms on Wednesday (see separate article).
Turkish shipbreaking scrap prices stood at $365-385/t delivered on Wednesday, down from $365-390/t last week.
The Turkish currency was pegged at TRY 34.29/dollar by Wednesday business close.
