Turkish scrap prices dropped again on a lack of steel demand

Turkish scrap import prices decreased w/w

Last week, Turkish scrap prices dropped on a deal from the USA. Our assessment fell to $339 /t CFR for HMS 1/2 80:20, down by $11 /t w/w and $33 /t m/m.

The downward movement in the scrap market is mainly due to the stagnant state of the finished steel market in Turkey. Most mills are struggling with sales in both domestic and export markets and, even with declining offers, Turkish offers remains uncompetitive compared to Asia and the Middle East. While mills are trying to negotiate for more discounts in scrap prices, scrap sellers are unwilling to trim down offers partly due to tightening supply.

In the Asian scrap markets, offers for H2 continued to edge lower to $365–370 /t CFR Vietnam, down from $380 /t CFR Vietnam in mid-November. Still, there has been an absence of buying interest.

Outlook: Demand may continue to weigh on Turkish scrap prices

The Turkish finished steel market is expected to remain quiet in the near term as mills struggle to balance costs with little to no demand. This means that scrap buyers are unlikely to lift their bids in response to sellers’ requests. Meanwhile, seasonally tighter supply and continued destocking of scrap will bring some support to prices.