Turkish mills last week continued to keep scrap purchases on hold due to the stagnancy seen in steel sales. While rebar prices are continuing their gradual decline and trading activity is almost null, Turkish mills, unable to see the clear picture of the market, are not willing to commit to buying scrap despite their ongoing needs for May shipment purchases.

Although almost all suppliers have material to sell, they are hesitant to mention a price level due to the lack of appetite from Turkish mills.

Some European mills were heard talking about $620/tonne cfr levels for HMS 1&2 80:20 at the beginning of last week, but as the week progressed requests moved down. US suppliers were hoping to sell at above $630/t cfr early last week, though most Turkish mills did not find this level workable under current rebar prices. 

A US supplier: "The market is on a downward trend until Turkish mills resume scrap purchases. However, I am not sure where prices will stand once they start buying scrap. With current rebar prices and absent demand, mills are not willing to pay even low $600/t cfr levels for scrap."

Although activity remained poor throughout the week, a western long steel mill concluded a booking from the US on Friday. With this fresh deal at $596/tonne cfr for shredded and bonus grade, scrap prices have recorded a sharp fall in Turkey.