Posted on 05 Feb 2025
Scrap prices in Turkey are seen increasing further on fresh offers in the market. Scrap suppliers from all regions increased their price targets on Tuesday.
Following the latest EU-origin deal around $344/tonne cfr for Turkey HMS 1&2 80:20 on 31 January, some European suppliers are seen to have increased their offers to above $350/t cfr. One offer from the UK stood at $355/t cfr for the same grade on Tuesday. However, another UK supplier, a newcomer in the market, sold HMS 1&2 80:20 at $345/t and bonus grade at $365/t cfr.
Meanwhile, most European exporters increased dock prices by €5/t to €295-300/t delivered on Tuesday, while the euro strengthened slightly to $1.031 from $1.025 a day earlier, contributing to suppliers’ higher price targets.
The US domestic market kicked off February trading strongly on Monday, with a major mill’s bid at $30/gross ton higher for shredded versus January values but suppliers’ refusing this level. US suppliers in Turkey have consequently also increased their target levels, offering at above $360/t cfr for HMS 1&2 80:20. Some have even halted offers as they initially want to see where US domestic prices settle.
On Tuesday, Baltic-origin offers stood at $355-360/t cfr Turkey, depending on origin.
Turkish mills, however, are reluctant to accept these increases amid uncertainty prevailing in the global market arising from US President Donald Trump’s fast-changing tariff decisions, volatile EUR/USD exchange rate and China’s absence amid holidays.
Although mills also increased steel offer prices, in line with scrap offers, on Tuesday, they have failed to see an improvement in sales. Despite their largely incomplete March-shipment bookings, weak steel demand is preventing mills from rushing to buy at higher levels. On the other hand, they fear even higher offers from the US after US domestic scrap settles this week. On Tuesday, at least four Turkish mills inquired about scrap.
A supplier tells Kallanish: “Turkey may not want to pay $350/t cfr for European material today. I find Tuesday’s workable prices at $347-348/t from the EU, around $355/t from the US and $350-353/t cfr for high-quality Baltic. But this is what I see now, on Tuesday. I have no idea what tomorrow will bring under the current uncertainties.”
Another supplier says: “I will not talk about values but what I am sure of is that Turkey will not find yesterday’s price today. Mills have to pay $3-5/t higher today if they want to secure material.”
In the short-sea market, a supplier finds workable prices at $330-335/t cfr from Romania and $340/t cfr from Italy.
In Turkey’s domestic rebar market, mills’ official offers stood at $560-580/t ex-works on Tuesday after Turkish mills sold at $550-560/t a day earlier. Demand, however, is struggling.
Source:Kallanish