Following the rebound in Turkish imported scrap prices last week, Turkish mills have hiked semi-finished and finished steel offers.

Although the hike in offers since Friday has accelerated steel sales to some extent, as steel buyers are initiating delayed purchases in both the domestic and major export markets, the sustainability of sales remains a concern.

On the other hand, Turkish mills are facing an increase in scrap offers. They are being cautious in accepting higher scrap prices as they believe the fundamentals of price rises are not solid enough.

Following the latest sales at $340 and $343/tonne cfr Turkey for premium HMS 1&2 80:20 from the US and Baltic respectively last week, scrap suppliers are targeting higher prices this week. Although some suppliers have backed off from the market, three Baltic-origin suppliers are seen offering HMS 1&2 80:20 at above $345/t cfr. Benelux suppliers find a price below $340/t cfr unworkable for 80:20 due to their costs.

A scrap supplier tells Kallanish: “There is no strong scrap demand in the market. Some mills are bidding at $315/t cfr for short-sea scrap but exporters do not accept prices below $325/t cfr.”

Another supplier says: “Mills are initially gauging steel sales after raising steel prices. They will most probably plan scrap purchases accordingly. Scrap prices are not likely to increase more than $5-10/t for me.”

Another supplier, however, expects to see steeper increases due to the supply issues caused by lower scrap prices.

A mill source says: “The recovery seen in China last week has triggered the rebound here but China is not showing a stable course. It’s the same cycle again. We are increasing our [already high] prices and hoping to sell. What will happen after those delayed purchases are completed and there is a [economic] contraction in the world? I don’t see solid fundamentals at all.”

Meanwhile, following the latest rebar sales at around $615/t fob Turkey to Chile, the EU, Israel and Yemen last week, Turkish mills’ offers have increased to $625-640/t fob actual weight levels this week. Prices in the domestic market are also at the same levels. Although stockists are active in the market since the beginning of this week, end-user demand is still lacking. In a market where everyone is already cautious, this is raising further concern.