Scrap prices in Turkey are following a stable trend, although Turkish mills’ demand remains subdued. Limited activity was heard last week at prices unchanged from the previous week, Kallanish notes.

The latest bookings appeared at $350/tonne, $346/t and $346.5/t cfr Turkey for HMS 1&2 80:20 from the Baltic, the EU and Venezuela respectively.

US suppliers, targeting higher levels, remained mostly out of the market. Their price targets for HMS 1&2 80:20 are seen at around $360/t cfr Turkey.

However, it is questionable if Turkish mills will accept higher levels due to the ongoing unfavourable situation in steel sales, which is pressuring steel prices.

Although a Bulgarian supplier sold at $316/t cfr and a Romanian supplier sold at $320/t cfr last week, other short-sea suppliers are seen targeting higher levels, at above $325/t cfr.

Besides the lacklustre export demand, Turkish domestic demand for rebar remained slow on the last day of the week. Mills offered rebar at $550-580/t ex-works levels, while stockists’ offers stood mostly at $550-555/t.

Although there are hopes for improved conditions for both steel sales and scrap demand in September, there is some doubt over this as China is not supporting the global market. Expectations for the rest of the year remain quite bearish in terms of continuing demand contraction. Improving steel sales are a must for Turkey’s scrap demand to increase.