Turkiye’s imported ferrous scrap market was abuzz this week and scrap prices firmed up on active demand. Prices touched a 10-month high on active trade. Sentiments were mixed among Turkish mills regarding the near-term price direction as negotiations for ferrous scrap continue.
Steel producers are restocking as they need to cater to demand for rebar with post-earthquake construction activities gathering pace. Market participants are hopeful that prices will remain stable in the next round of transactions as current levels are suitable for both buyers and sellers.
SteelMint’s daily assessment for HMS 1&2 (80:20) from the US stood at $463-465/t CFR Turkiye. Prices have risen by $8-10/t w-o-w.
However, a few scrap suppliers believe that demand is too strong and prices may increase in the near term.
Domestic market overview-
Rebar prices fall as energy tariffs drop: In response to decreasing energy tariffs, Turkiye’s steelmakers have started to lower domestic rebar prices. Despite the lack of demand, export rebar prices remain stable. Steel manufacturers have quoted fresh offers for domestic rebar at $755/t exw, depending on the area, compared with $760/t exw towards the end of last week. At the same time, offers from ICDAS, Turkiye’s largest long steel producer, remain steady at $750/t exw Biga and $765/t CFR Marmara. Lower production costs explain the marginal downward correction.
Billet market strong: Commercial activity in the Turkish billet market has halted because of disparity in prices. While local companies raised their semis prices due to higher scrap costs, overseas suppliers kept their prices mostly steady.
Turkiye receives EU aid: The terrible earthquakes that struck Turkiye in February rocked the country’s economy, and reconstruction efforts will rely on both local and foreign resources. The European Bank for Reconstruction and Development (EBRD) has contributed significantly to this initiative by offering Turkiye EUR 1.5 billion to boost reconstruction and rehabilitation efforts.
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