Turkish scrap market is calm in late October. Prices for import material remain unchanged, as no deals have been signed so far. Nevertheless, influence of the factors causing the downward movement of prices starts to fade out this week and the first signs of an imminent trend reversal have already appeared.
Turkish steelmakers purchase little import scrap, expecting its quotations to fall further. However, suppliers are in no hurry to back down, preferring to delay sales, because market picture becomes more favourable for them. Scrap collection gradually declines in some regions, while steelmakers need to stockpile at least minimal amounts of scrap ahead of winter. The situation in the segment for finished products has also changed for the better, making scrap collectors optimistic: sales of Turkish rebar have risen somewhat. Besides, scrap exporters still have their own reasons not to drop prices.
In particular, it is unfeasible for traders in the Azov-Black Sea basin to continue cutting quotations amid current purchase prices at ports. Stronger rouble against US dollar also aggravates the situation for Russian scrap collectors. Ukrainian and Romanian suppliers, in turn, have switched to domestic markets now.
Exporters at the eastern ports of the USA keep prices to Turkey steady, because domestic scrap quotations have ceased falling in their country.
Only European suppliers are struggling for every customer, including Turkish one, amid slack business activity in the region. EU traders may reduce their offers further. Nevertheless, this will not force other suppliers to follow, but US, Romanian, Russian and Ukrainian exporters will have to postpone lifts in their prices to mid-November.
( Source: www.metalexpert-group.com )