ANKARA: Turkey faced another day of silence in the ferrous scrap market, with most sources pointing to the coming constitutional referendum on Sunday as the cause. Prices appeared softer, due to a lack of demand from Turkish mills. “Turkey is dead. There is no scrap market. They are waiting for the referendum (result) on Monday so no buying or selling is happening,” said a Turkish trader. Domestic demand for finished products could be affected by the referendum, said a Turkish producer. This demand would be key to how heavily mills would lean on the scrap price, as if construction activity came in strongly an increase could be justified. “Suppliers are in the market, but even if they are offering at the same level as the last trade, mills will not give a bid,” said a Turkish scrap trader. “They might buy at $260-$263/mt, but if they did they’d then expect $255/mt. They’re just not looking for material.” Seasonal elements could also be affecting the market strength, as the trader noted that it was at this time last year purchasing fell silent for around four weeks.
A Turkish trader exporting from Europe said most scrap sellers had a shortage of material, meaning the docks price in Europe had increased. He saw prices slipping to $265/mt for any near term sales, but Thursday he said there was no real pricing. The European market rolled over on the whole, according to a European trader. He said pricing for shred was equivalent to $270-$275/mt CFR Turkey, which he said was the correct price for that market. S&P Global Platts assessed HMS I/II 80:20 CFR Turkey at $273/mt Thursday, down $1/mt from Wednesday.
