Turkish market for ferrous scrap has been calm this week, as expected. Steelmakers' demand is utterly slack due to falling export and domestic quotations of square billet and rebar in the country, although import scrap prices have also started to go down.
Most Turkish steelmakers are expected to prefer the material from Azov-Black Sea region in early October, as its prices are the lowest now. Besides, its delivery period is shorter, which is another reason for those companies who have not stockpiled enough scrap for the next month to chose it.
Russian and Ukrainian suppliers have cut their quotations to Turkey, because domestic prices are falling in their countries. A drop in freight rates from Azov Sea ports has also affected quotations of A3 scrap and it will result in lower transportation cost from Black Sea ports soon. Besides, CIS traders have been unable to sell scrap to Turkey longer than other suppliers, so they made reductions.
The Turks may also sign a few contracts with US and European scrap collectors in early October. However, only steelmakers in the south of Turkey will book the material from these regions, being unable to import scrap from the Azov-Black Sea basin.
Noteworthy, European material is more attractive for Turkish importers than the US one, albeit it has not brought expected results for European traders so far. A Belgian exporter has reportedly been offering HMS 1&2 (70:30) this week at $429/t C&F Turkey, and HMS 1&2 (80:20) – at $446/t C&F, but has found no buyers.
US scrap collectors have also abandoned the upward policy in end-September amid revaluation of the US dollar. Nevertheless, US HMS 1&2 (80:20) is currently quoted to Turkey on average $20/t above the offers of the similar European material.
European suppliers more eagerly grant discounts in the dollar terms, as they suffer minimal losses in terms of euro due to its weakening against the US currency. In turn, US traders have dropped their export quotations by a mere $1-5/t, as domestic prices remain steady in the country.
( Source: www.metalexpert-group.com )