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Turkey scrap market price increase, price decline


Date:

2023-04-28

The amount of scrap quoted on the Turkish market increased on Friday. While no orders have been heard, some suppliers confirmed deals but did not give details of prices or ingredients.

The amount of scrap quoted on the Turkish market increased on Friday. While no orders have been heard, some suppliers confirmed deals but did not give details of prices or ingredients.

One Baltic supplier told: "I have sold the goods for the early January shipment. However, I cannot provide further details as I am committed to keep the transaction confidential. There are other transactions in the market that are also confidential."

Although not officially confirmed, it is rumoured that these deals for HMS 1&2 80:20 scrap from the Baltic Sea were made at $488-490 / mt cfr Turkey.

While most market participants believe scrap prices will fall further amid increased quotes and competitive billet prices, some suppliers expect to see scrap prices recover.

One supplier said: "I'm quite optimistic. Another week of positive trends in China could pave the way for Turkish exports. On the other hand, the coming winter and holidays will make scrap supply tight. This could lead to a recovery in scrap prices."

However, a steelmaker said: "Scrap demand in Turkey is likely to fall amid falling utilisation rates and a highly volatile exchange rate. I don't think there will be an upward trend in scrap prices. Instead, a downward trend seems more likely to me."

Another producer said on Friday: "Before this week, suppliers had been talking about the tight supply of scrap. However, we have seen many offers come back to the market. On the other hand, compared with scrap steel, the price of square billet is $650 / ton cfr, which is more competitive. This will increase pressure on scrap prices."

Suppliers from outside the EU and the UK have lowered their price targets and become more aggressive in the Turkish market, with the advantage of having a weaker domestic currency.

Most market participants believe that HMS 1&2 80:20 scrap prices from EU/UK and Baltic on Friday above $482-485 / mt cfr and $488-490 / mt cfr, respectively, are not feasible. Their price intention for HMS 1&2 80:20 scrap originating in USA is below $493 / mt cfr. "Only cargoes with higher scrap or high quality scrap content are likely to command a premium of $1- $2 a tonne because Turkish buyers are mostly asking for higher quality cargoes," said a Turkish steelmaker.

Meanwhile, Turkish exports of wire rod have yet to recover due to limited demand. Although a Turkish steel mill sold 10,000 tons of wire rods to Peru at $640 / ton fob Turkey, demand remained weak in other destinations. Mesh wire rods are mostly quoted in the range of $810- $835 / ton fob, although higher prices are available from more popular manufacturers.

Key Words:

Turkey scrap