Turkish imported ferrous scrap prices increased to an 8-month high. Suppliers held back offers and were heard targeting $440-$445/t CFR in the short term. Some bulk cargo bookings from the US, the UK, Europe, and Baltic region took place at increased prices this week.
The Turkish government’s request to steel mills to provide finished steel within 3-4 months for reconstruction work has fuelled an expectation of significant scrap demand. This has prompted at least 15 deep-sea scrap deals to be scheduled since 15 February 2023. Most of the cargoes were booked by major steelmakers only. Mills began to look for accessible scrap quantities. Cold weather combined with high demand helped suppliers to attain better levels.
“Prices are rising too quickly. Sellers are aiming for $440/t CFR and may be able to sell at that level, but I believe they will shortly hit $450/t CFR,” a source from a Turkish mill stated.
“The market is very busy. Constant buying has been noted. In fact, mills are approaching us for further procurement. It is a positive scenario,” said one Baltic supplier.
Sellers in the market are quoting above $440/t. However, most of the bids are not going up to that level.
SteelMint’s daily assessment for HMS 1 and 2 (80:20) from the US stood at $440/t CFR Turkiye. These have significantly risen by $20-25/t w-o-w.
Today, the Turkish lira was largely stable. It was trading at 18.85 against the dollar from 16 February.
A considerable increase in imported scrap offers led to active negotiations amid demand pick-up in the local rebar market.
Domestic market overview
The country’s southern region experienced two earthquakes in quick succession on 20 February. As a result, the danger of yet another earthquake is still lurking in some areas. This situation has affected the overall mood of the market.
“I heard some rebars sales. However, the business is still slow owing to the current situation in the country,” shared a reliable source from a mill.
- Rebars prices rise on quick demand: The situation in the finished steel market is difficult even though the country is still witnessing quakes. Longs are still challenging to come by. Turkiye’s steel manufacturers kept raising prices of local rebars. Business activities in the industry are still far from an ideal scenario. Since the last close, domestic rebars offers from Turkish steelmakers increased by $10/t, depending on the location, to $730–735/t exw. Some manufacturers looked hesitant to sell for the time being.
Outlook: As mills supply finished steel for reconstruction of the affected areas, prices are expected to remain supported by higher demand.
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