More Turkish mills have started inquiring about scrap with price targets at below $380/tonne cfr.

Scrap suppliers enjoy support from firmer iron ore, higher scrap prices in India, improved billet prices and Turkey’s obvious demand. They increased their price targets towards the end of last week.

Despite the weak euro, an EU-origin supplier is seen to have increased its offer price to $385/t cfr for HMS 1&2 80:20 from $382/t earlier last week. A Western mill that placed a bid at $380/t cfr for European material failed to source at that level. Some US suppliers are heard offering HMS 1&2 80:20 at above $390/t cfr.

A mill tells Kallanish: "Suppliers are trying to make the most of our ongoing requirements. European suppliers are raising their prices despite the weakening euro favouring us. I believe there is sufficient material from all regions to meet our requirement.”

A Baltic supplier says workable levels for premium HMS 1&2 80:20 stand at around $385/t cfr given Turkey’s weak steel sales and pressured steel prices.  Another Baltic supplier says Turkey will have to pay $385/t cfr for European material early this week as it has delayed its purchases to the very last minute.

A trader says: ”Most suppliers think Turkey needs to buy around 12 deep-sea cargoes for May shipment and keep their price targets high. However, this may not be correct considering the latest billet purchases of Turkish steel mills. Turkey is not in a position to pay a higher price for scrap.”

Turkish long steel producers failed to improve steel sales in its domestic market and abroad, even during an expo after the long holiday. They find offer levels for scrap unworkable amid current steel prices. Rebar mills have been forced to decrease their prices to $585-610/t ex-works amid sluggish demand.