Turkish scrap prices unchanged in a silent market

Turkish scrap import prices unchanged w/w

Last week, Turkish scrap prices remained stable at $368 /t CFR (+$0 /t w/w, +$19 /t m/m) in an absence of fresh deals.

Both finished steel (export) and scrap (import) prices were mostly stable in the past week as industry convened for the Irepas conference during 9-11 October, while a lack of activity in the market continues to drive poor sentiment. Longs export prices edged slightly higher after the initial rise at the beginning of October following a change in the calculation method for natural gas used at industrial sites – which could cause gas prices for large industrial users to rise up to 37%.

In the Asian scrap markets, offers for H2 have also been stable w/w, at around $385 /t CFR Vietnam. While scrap market stayed quiet, there has been some recovery in trading activities for longs.

Outlook: Turkish scrap prices will soften going forward

Limited finished steel demand in the European markets continued to put downward pressure on prices. Meanwhile, higher energy costs comparing to some other regional sellers pose a big challenge to Turkish mills in terms of competitive advantage. We expect scrap prices to soften throughout Q4 amid bearish sentiment in steel demand and production.

Latest in Market