Market estimations for ferrous scrap imported to Turkey remained stable on Tuesday, but some sell-side sources said the market was becoming slightly softer with the possibility of a small downwards correction.
"The market might be softening, but it is not a fall," said an agent for European exporters. "The finished market is positive. For the moment it is flat because demand is almost zero."
Sellers have all come into the market and offered at once, he said, and Turkish producers were playing to this sudden availability of material.
Some 20 cargoes were said visible, according to a Benelux exporter, although he said this was normal after two to three weeks of low volumes being purchased.
"It's nothing compared to the monthly total they will buy, but November might not be so easy. They might be surprised by what will be available," the exporter said.
Softness in the market could be US-led, said another European exporter. Some talk was heard in the market this week of exporters wishing to limit pricing as they collect material for short-sold cargoes.
But US conditions have become more difficult after hurricanes in the South. The EU exporter acknowledged this may see Southern buyers and Mexican importers looking to the East Coast for material instead of Houston, adding some competition for Turkish mills.
Several buyers said they would be in the market in the latter half of the week, the exporter added.
The suggestion of softness had come from the US sale report Monday, a trader said. "They accepted $355/mt after insisting up to mid $360s last week," he said.
Downside room in the market could be due to the cost of electrodes for EAF-based producers, a Turkish trader said.
Scrap prices looked a little lower, but rebar and billet prices were up, he said, so support from complementary markets had not diminished.
This was also seen in an uptick for iron ore pricing on Tuesday, and in Chinese Tangshan rebar prices -- sentiment reference points that have proved capable of affecting scrap direction.
The Platts TSI assessment for HMS I/II 80:20 was stable at $355/mt CFR Turkey on Tuesday from Monday.
