LONDON (Scrap Monster): Steel scrap prices are estimated to go down on weak demand from Turkish markets. Steel scrap prices were little changed this week but market players expected prices to fall soon as demand from top importer Turkey remained poor.
Turkish steel mills are mainly hit by the unrest in MENA regions which are the key import market for steel long products. Steel scrap sold at $440-450 per tonne cost-and-freight Turkey this week, similar to last week, when it fell $5-15 per tonne.
Steel makers have been finding difficulty to sell their products because of geo political issues which in turn has decreased the demand for steel scraps for steel making. This may prompt a further price fall in the next few weeks, as Turkish mills are not taking stocks in now; they are not selling rebar either.
The volumes of steel scraps exported to Turkey by U.S. and European markets have decreased crucially; U.S. and European recyclers sold only about 100,000 tonnes of steel scrap at $440-450 per tonne, depending on the grade, to Turkey this week.
Offers from Russia and Romania also fell about $10 a tonne to $420-430 a tonne cfr, according to steelmakers. Given the poor demand from Turkey, some European and U.S. steel scrap recyclers started to look at other export markets.