Turkish scrap import prices plummeted further over the weekend as one US merchant was reported selling cargoes to two separate Turkish mills. A decline in Chinese steel prices in recent days and signs of weakening steel sentiment in the Asian nation could be behind the slump, market participants tell Kallanish.

The US merchant sold one cargo at $261/tonne cfr Turkey for HMS 1&2 80:20, $266/t for shredded and $271/t for bonus scrap. The second cargo had a similar composition but was booked by a separate mill at $2/t higher. This represents a $15-20/t decline in North American-origin scrap prices versus one week ago.

The US deals follow two North American-origin deals from the same supplier reported late last week that put HMS 1&2 80:20 at $269/t cfr Turkey.

A Europe-based scrap merchant says the current downward correction is the result of Turkish mills negotiating better margins. However, strong US domestic scrap demand, firm Chinese steel demand and reduced pig iron availability from Ukraine provide solid support to prop up scrap prices, he adds.

Nevertheless, there are signs that Chinese steel demand is wavering. Chinese export offers for hot rolled coil fell sharply over the last week, following the downturn in the domestic spot market (see separate story).

Moreover, Turkish mills have struggled to sell significant rebar tonnages at higher prices in recent weeks, while Turkey’s domestic market remains in wait-and-see mode in the run up to next month’s constitutional referendum.