Turkiye: Imported scrap prices go south amid absence of active bookings

After the national holidays, the Turkish imported ferrous scrap market remained subdued as mills are resisting to book any fresh slot amid weak finished steel demand. Scrap prices in the country continued to remain under great pressure. If steelmakers need prompt shipments either they can negotiate further or wait for further downtrend, sources informed.

Interestingly, due to limited demand in Turkiye, major US-based bulk scrap suppliers turned towards India and Bangladesh.

SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $350-355/t CFR, down by $5/t w-o-w.

Negative market trend

• Lira stable: The national currency, Lira, remained stable against the dollar. It is currently trading at 18.62.
• Local rebar offers soften further: Negative demand forced the mills to weigh down the longs prices this week again. Turkish long steel producer ICDAS decreased its rebar offers to regional buyers by $10/t against the levels seen at the previous week. Current prices are set at $665/t EXW Biga and $676/t CFR Marmara.

Whereas, offers from other local mills are ranging within $640-660/t EXW depending on the
region.

• Billet prices move down: Lack of support from steel market kept billet prices on the lower side. Steel producers are offering billets to local customers at $605-610/t EXW. However, this level is still not workable and possible accepted levels are in $590-600/t, EXW as per market sources.
• Crude steel output down: Turkiye’s crude steel production was 2.7 mnt in September, down 19.4% compared to the corresponding period last year, as per World Steel Association (WSA).
• Imported scrap shipments down by 14% in Sep’22: Turkiye’s ferrous scrap imports were down by 14% to 1.38 mnt in September 2022 compared to 1.6 mnt last month, as per Customs data. Suppliers remained reluctant to sell at sufficient discounts, while buyers needed time to accept the higher prices.

Outlook
It is expected that prices would remain rangebound and Turkish buyers might accept that levels. Lower pricing is unlikely to be achieved amid strong seller resistance.