Turkish scrap prices dropped further amid weaker longs demand

Turkish scrap prices fell on two fresh deals in the week commencing 12 September, down to $349 /t CFR for HMS 1/2 80:20 (-$22 /t w/w, -$46 /t m/m).

Scrap prices⁽¹⁾ $/t	19-Aug	26-Aug	02-Sep	09-Sep	16-Sep
HMS 1/2 80:20 CFR Turkey	395	393	396	371	349
Shredded CFR Turkey	415	413	416	391	369
Notes: (1) weighted average of known transactions from all points of origin.

The previous hike in Turkish longs offers following a 50% increase in gas and electricity prices Longs export prices remained rangebound w/w while market activity has been weak given the hesitant attitudes among buyers. This continued to dampen the demand sentiment for scrap, and mills sought to keep scrap costs down given soaring energy costs.

Outlook: Turkish scrap prices may stay on a downward trend

For Turkish longs sellers, the widening gap between domestic prices and import offers from Asia are also restricting selling activity. They will look to take advantage of their competitive export pricing relative to European domestic prices. Even so, this could lead mills to seek lower-cost scrap – or to further cut their production as they are outcompeted.