Posted on 16 Nov 2022
Scrap prices in Turkey remain under pressure amid weak demand and falling steel values.
Following the latest booking at $334/tonne cfr Turkey from the EU towards the end of last week, no fresh deal has been confirmed so far this week. However, more deals at below $340/t cfr are heard to have been concluded and kept confidential.
Amid falling steel prices and weak demand, Turkish mills’ appetite for scrap purchases is quite low, Kallanish notes.
Turkish producers think $330-335/t cfr will be easily achievable for premium HMS 1&2 80:20 in a few days, although suppliers, including Europeans, are trying to hold prices above $335/t cfr.
On the short-sea market, the latest booking for HMS 1&2 80:20 appeared at $310/t cfr Marmara.
An Italian supplier is seen offering 3,000 tonnes of HMS 1&2 80:20 at $335/t cfr, though this level is unlikely to find acceptance in the Turkish market.
Amid falling scrap prices, the further strengthening of the euro against the dollar on Tuesday challenged European scrap suppliers who are already suffering from weak inflow.
Turkish mills have managed to decrease scrap prices to certain levels, though current levels are still found high given conversion costs and falling steel prices. Mills are seen targeting prices in the low $300s for scrap.
On Tuesday, rebar offers from Turkish mills stood mostly at around $630/t ex-works levels. Demand, however, remained weak as buyers limited purchases to their urgent needs. Export demand, on the other hand, is still lacking.
Source:Kallanish
