Turkish scrap prices adjust downwards on bleak steel demand

Turkish scrap import price dropped to $365 /t for HMS 80:20 following low market activity for two consecutive weeks and weak finished steel market fundamentals. Competitive Russian billet offers have also put downward pressure on scrap demand and prices. Market participants expect this lack of demand to continue in August, which could see prices of scrap remaining stable or falling marginally.

Turkish scrap import prices decreased w/w

Last week, Turkish scrap prices declined to $365 /t CFR HMS 1/2 80:20 with three new confirmed deals from North America, down by $41 /t w/w.

Scrap prices⁽¹⁾ $/t	01-Jul	08-Jul	15-Jul	22-Jul	29-Jul
HMS 1/2 80:20 CFR Turkey	332	406	406	406	365
Shredded CFR Turkey	347	426	426	426	385
Notes: (1) weighted average of known transactions from all points of origin.

Following the spike before Eid holidays in early July, Turkish scrap market remained silent for two consecutive weeks and then adjusted downwards amid continued weakness in Turkish longs demand. Competitively priced Russian billet offers at approx. $450–475 /t CFR Turkey put further downward pressure on both longs and scrap prices. Meanwhile, local market activity has been muted with the Turkish Lira continuing to depreciate against the US Dollar.

In the Asian scrap market, prices trended downwards due to persistent slow finished steel demand. The market is marred by continued oversupply, which drove down offers for H2 from Japan further w/w.

Outlook: Turkish scrap prices unlikely to pick up in August

With prevalent bearish sentiment across the global market, market participants expect the lack of demand for scrap to sustain in the near term, especially with most mills in Turkey running at reduced capacity. Accordingly, scrap import prices to the region are likely to fall marginally or keep stable.