Turkish scrap buyers face higher offers from suppliers

Turkish scrap import prices unchanged w/w

The Turkish scrap market was again inactive last week as our assessment remained unchanged at $339 /t CFR for HMS 1/2 80:20 (+$0 /t w/w, -$33 /t m/m) due to a lack of new deals.

Scrap prices(1) $/t28-Oct04-Nov11-Nov18-Nov25-Nov
HMS 1/2 80:20 CFR Turkey372348350339339
Shredded CFR Turkey392368370359359
Notes: (1) weighted average of known transactions from all points of origin.

Sentiment in the Turkish finished steel market remained bearish. The lack of export activity is notable amid weak demand and an inability to compete with lower-priced import offers from the Middle East and Asia. Most activity in the longs market seems to be in local sales.

Meanwhile, there are indications that scrap suppliers are looking to increase their offers after mills bought small volumes to satisfy local steel demand. Offers from the USA and Baltic were heard at approximately $350 /t for HMS 80:20, though no shipments have been confirmed at this level.

In the Asian scrap markets, offers for containerised scrap from Taiwan, China were heard at $320 /t CFR for obsolete grade. Buyers still remain inactive, particularly given China’s Covid-19 situation.

Outlook: Tighter supply to bring support to Turkish scrap prices

While scrap prices are facing more upward pressure into winter with tighter seasonal supply, scrap buyers will continue to face weaker demand, especially with heavily subdued steel demand from end-users.

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