Turkiye: Mills less active in imported scrap bookings on subdued steel demand

Turkish steel producers and buyers have become less active in imported scrap bookings recently. The weak downstream steel sector and negative sentiments in the domestic market have kept scrap buyers on the sidelines. Meanwhile, the enquiries remained absent as no firm bids and offers were heard.

The sharp correction in finished and semi-finished steel prices has put scrap market in a difficult situation. Steel mills are expecting further discounts in scrap offers.

Recently, Turkiye’s ferrous scrap import prices have fallen further following the recent round of trades. A cargo containing 25,000 t of HMS (80:20) and 5,000 t of PNS and shredded, each of Western Europe-origin was booked at an average price of $335/t CFR Turkey.

SteelMint’s price assessment for USA-origin HMS 1&2 (80:20) is at $335/t CFR basis, registering a sharp hike of over $40/t w-o-w.

Market overview

• Lira largely stable against dollar: Turkiye’s currency lira which has been witnessing a consistent fall in the past couple of weeks have now attained stability at 17.35 compared to 17.32 a week ago.
• Domestic scrap prices continue to drop: Turkish domestic scrap prices continued to weaken amid the sharp fall in imported scrap prices and unfavourable finished steel sentiments. Mills have lowered their purchase prices for domestic scrap by TRY 100-250/t. Steel mills anticipate that domestic scrap prices will go down further till the overall market situation improves. Other companies kept their scrap prices unchanged.
• Local billet prices dive deep: Turkish domestic billet prices continued to decrease over the week, following the sharp drop in imported scrap prices. Most buyers prefer to stay in a wait-and-watch mode, anticipating further negative corrections.
• Rebar prices decline further: Turkish steelmakers continue to decrease their rebar offers for domestic sales amid weak buying interest. Market participants expect this trend to continue in the short term. The country’s largest rebar producer ICDAS reduced its domestic price to $660/t exw-Biga and $681/t CFR Marmara. The downtrend is mostly related to a sharp drop in imported scrap offers and weak rebar demand.

Outlook: Turkish mills have made limited scrap bookings this week, despite low offers. However, mills are likely to procure a few more cargoes to restock the material.