Scrap prices in Turkey followed a relatively stable trend in the latest deals, at $380-382.5/tonne cfr Turkey for US material and $375/t cfr for EU-origin HMS 1&2 80:20.

However, the market is now debating the next price movement, following developments such as China's announcement of policies to stimulate the real estate market and Israel's plan to terminate its free trade agreement with Turkey.

While some participants expect China's announcement to support market sentiment, others believe it will not have a positive impact on the Turkish steel market, especially for long steel products. This comes as Turkish mills, with limited export destinations left open, had pinned their hopes on the reopening of the Israeli market, which have now been dashed.

Israel has become a major market for Turkish steel exports, with 1.2 million tonnes exported last year, especially after Turkish producers were pushed out of the American and Asian markets.

A US supplier, arguing that offers for quality scrap are limited, is targeting to sell HMS 1&2 80:20 at $385/t cfr Turkey after a deal at $382.5/t. A European supplier, believing China will support global scrap market sentiment, increased its price target for the same grade to above $380/t cfr, though most participants find this unachievable.

Dock prices in the EU stood mostly at €305-310/t ($331-337) delivered on Friday. In the short-sea market, a northern Turkish mill is heard to have bought Romania-origin scrap at around $363-365/t cfr.

Although a further fall in scrap prices seems unlikely, a rise in the market is also doubted as Turkish mills struggle to sell steel and are decreasing their offer prices. Consequently, mills are expected to complete June-shipment scrap purchases at current levels.