ANKARA (Scrap Monster): Forward prices in the Turkish scrap metal market have fallen on concerns that continued political unrest in North Africa and instability in the Middle East will hit exports of rebar steel products to Turkey''s most important export markets.
Traders in scrap and steel market here have lowered their market outlook for remainder of 2011 on account of prevailing geo-political tensions. of the year.
"The North African crisis so far has been very much about oil for understandable reasons," said Arthur Worsley, broker with Freight Investor Services. "But the forward curve shows that traders expect scrap prices to lose 58 US$ of value by the third quarter, with the Cal 12 contract at 385 US$."
Turkey''s steel market relies heavily on scrap as a steelmaking feedstock and is also a major exporter to north Africa of long steel products. With the unrest worsening in North Africa and the threat growing of contagion in the Middle East, steel traders believe fragile economic activity could stall unless stability is quickly restored.
"With the worst of the winter weather receding, there is more scrap around which will have some effect on prices," added Mr Worsley. "But we are seeing a real nervousness at the mills about African and Middle Eastern markets, which are reflected in the prices in the forward market."