Turkish steelmakers faced higher offers for ferrous scrap on Monday as a bullish Chinese market boosted domestic EU and US scrap pricing.
But Turkish mills have kept away from the market as the country's economic woes have made an increase hard to swallow.
S&P Global Platts assessed HMS I/II 80:20 at $270/mt CFR Turkey on Monday, up $2.50/mt from Monday.
US merchants were heard to maintain a minimum offer level of $280/mt for premium level 80:20.
One North American seller continued to offer shred for export at $305/mt CFR Turkey after talking this level almost two weeks ago.
Another premium seller appeared to be following in its footsteps, as an agent said they had increased their expectations to $290-$295/mt for January bookings to Turkey.
European sellers looked in the same direction. "Local steel mills have increased their prices so the market is strong," one seller said. "The minimum for 75:25 is $270/mt."
That would point to a minimum level of $276/mt for premium HMS I/II 80:20, based on last traded differentials between the two grades.
Domestic US and EU mills have been bullish for December as Chinese steel continues to find higher pricing levels. Domestic rebar and billet prices rose as iron ore reached another high point for the year.
This bullish environment stacked against Turkish mills, pushing scrap prices up despite difficult conditions for producers.
End product sales have been static and exports have fallen to $420/mt FOB for rebar. This left a spread of $150/mt between ferrous scrap and rebar -- a level seen as making it hard for Turkish mills to maintain production.
Macroeconomic conditions compounded the problems, as the Turkish economy shrank for the first time in seven years during the third quarter. This led to a fresh high for lira-denominated bond yields as the impact of slowed tourism, falling exports and July's failed coup became clearly visible.
The contrasting situations for Turkey and China may have created a new avenue for steelmakers, however, as Shanghai buyers appear to be sounding out Russian and Turkish producers as sources for imports -- due to Chinese prices becoming too expensive.
