Mills turn silent as market hits ‘deadlock’
Date: Feb 13, 2019
Market participants believed that scrap prices were still becoming firmer, in line with the global price trend in raw materials and tightening supplies of scrap.
“The offers for HMS 1&2 (80:20) are going up to $335 per tonne cfr Turkey from suppliers in the United States,” a Turkish mill source said. “However, the mills will not be able to accept any price over $330 per tonne cfr unless they sell some finished [steel] goods at higher prices.”
Meanwhile, the mills have booked enough scrap to cool down their purchasing activities and watch the market to see which direction it moves, Fastmarkets was told.
“Mills have booked enough scrap for their immediate needs and the major suppliers have already sold their cargoes. But demand from Southeast Asia for Turkish rebar has not improved, despite expectations, and the market is in deadlock at the moment,” another Turkish mill source said.
