Turkish scrap prices rise on tighter supply

Turkish scrap import prices increase w/w

Turkish scrap prices started to increase significantly last week. Accordingly, our assessment for HMS 1/2 80:20 rose to $374 /t CFR based on two new deals, up by $35 /t w/w and $26 /t m/m.

Scrap sellers have been raising prices amid tighter supply into winter months, and buyers were more active in the market last week in anticipation of further price increases. Although Turkish finished steel sales remain subdued, rising scrap prices have mills and stockholders seeking higher prices for fresh bookings. This has led to a rebound in longs export prices.

Outlook: Turkish scrap prices unlikely to retreat in the near term

Turkish scrap import prices are likely to stay rangebound around current level or even increase further due to the lower collection and slower market activity in the winter holiday period of major exporting regions. Scrap prices will then face more downward pressure from limited steel demand after seasonal impacts fade.

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