TURKEY July 13 2016 11:31 AM

ANKARA (Scrap Register): The LME scrap futures contract, settled against TSI’s benchmark for Turkish scrap imports, saw another month of strong growth, soaring 190% month-on-month. After an initial big slump of 14.5%, the Turkish scrap price continued its steady decline ended at $217 a ton, down 10.3% over the course of the month.

The unprecedented period of no trading activity in the Turkish market continued into the first week of June. It was believed that mills were still using scrap material from April and May deliveries and also that they reduced their utilization capacities, hence they were able to withhold deep sea orders. 

However, deals were booked in a flurry of activity in the second week of June, with trades settling around the $230 a ton mark, nearly $100 a ton lower than the last recorded deal. There was though price uncertainty amongst participants, as was indicated by a spread of $21 a ton between trades. 

The second half of June saw trading activity slow again as mills experienced sluggish export demand for rebar. However, participants remained hopeful that bookings would pick up post-Ramadan in both the domestic and export markets. 

As always, competitively priced Chinese export billet offers, as well as volatility in the US dollar exchange rate, meant that participants remained cautious about booking material.