Bullish conditions for the Turkish steel market pushed up imported ferrous scrap prices on Wednesday despite buyers sticking to the sidelines.
S&P Global Platts assessed Turkish imports of premium HMS I/II (80:20) at $284/mt CFR Turkey Wednesday, up 50 cents on the day.
High March indications for European, Baltic and US domestic scrap markets put exporters in a strong position, sources said this week. "Incoming volumes to the yards are quite slow even at the current price levels," a European exporter said on Tuesday. "Fundamentals are all strong now and sellers are unwilling to sell at last week's prices for April shipment.
European scrap settlements for March are leaning to a Eur20/mt increase, while numbers for the US have been heard from $35 to $50/mt depending on purchaser.
The aim has been to return pricing to January levels, sources said -- before The Turkish market fell over $50/mt in a matter of days.
Turkish exports hovered over $290/mt at the start of January, leading sellers to believe this is where value would return.
"There've been no deals done but expectations are more optimistic. Prices will be increasing, scrap demand is active again as we are receiving inquiries," an agent in Turkey for a European seller said.
Higher scrap prices were expected to be supported by domestic rebar purchasing and further exports to South East Asia.
Sales had already reached $285/mt according to the agent, as he had heard of a premium Baltic sale at this level.
No confirmation was heard from the market however, meaning the trade could not be included in the assessment.
A European seller backed the levy as feasible. Offers from the US were apparently $290/mt and higher, he said, with counter-bids coming from Turkey around $285/mt.
Sentiment from Turkish steelmakers was non-committal. One producer said that any pricing would be a gamble right now.
The US department of Commerce was expected to announce the results of an anti-dumping levy against Turkish rebar exports into the US on Tuesday, but the result was delayed, sources said.
Various dates were heard for the new announcement, adding a sense of confusion to a case which had already been seen to impact sentiment on Turkish steel.
Sources estimate that an anti-dumping duty of less than 10% will allow Turkish producers to continue on a bullish trend.
Anything higher will force a reduction below the current pricing for sales to remain viable.
