Market Overview
Turkish scrap prices are nearing their 2024 lows due to weakening steel prices and lackluster steel demand. On Tuesday, sentiment in the Turkish scrap market was notably negative. While Turkish mills still require December-shipment cargoes, their purchasing appetite remains subdued. Sufficient offers are available to meet their needs, allowing mills to delay procurement and focus on selling steel. However, both export and domestic steel sales remain stagnant.
Recent Price Movements
Some market participants report confidential deals for HMS 1&2 80:20 have dropped below $350/tonne CFR Turkey.
- A European supplier sought $350/t CFR but received no buyer interest. Firm dock prices have led some European suppliers to resist offers below this level.
- A U.S. supplier sold HMS 1&2 80:20 at $353/t CFR and shredded/bonus grade at $373/t CFR to a southern Turkish mill.
In the short-sea market, a deal from Romania was concluded at $340/t CFR Aliaga, with Turkish mills now bidding even lower.
Market Sentiment and Predictions
Suppliers are divided on price trends:
- One supplier believes the market is near its bottom, expecting prices to recover as they have historically.
- Another predicts further declines before recovery.
- A third notes Turkey may pay higher prices for January-shipment cargoes as European scrap demand resumes in the new year.
Meanwhile, a Turkish mill source highlighted significant oversupply, with major mills halting scrap purchases and refusing to pay $350/t CFR, even for U.S. material.
Rebar Market Impact
Rebar prices also fell on Tuesday due to weak demand. Mills’ offers ranged from $585-605/t ex-works, down from $595-615/t a week prior. Stockists in western Turkey offered prices as low as $580/t.
Price Outlook
Benelux suppliers find workable prices for HMS 1&2 80:20 at:
- $347-349/t CFR (EU materials)
- $350-351/t CFR (Baltic materials)
- $354-355/t CFR (U.S. materials)
However, some mills are targeting deep-sea scrap prices as low as $340/t CFR amid ongoing market challenges.
