Posted on 18 Aug 2022
Turkish steelmakers have raised their domestic scrap buying prices since last week due to the increases seen in imported scrap prices, Kallanish notes.
Import prices continued their rise last week, reaching the $400/tonne cfr Turkey threshold (see Kallanish passim).
No fresh imported scrap bookings have been heard so far this week, however. Mills are seen resisting offers at above $400/t cfr and are slowing their scrap purchases amid weak steel sales. On the other hand, the fact prompt requirements have been already covered means mills have time to gather a clearer picture of steel sales.
Suppliers point to supply and logistics issues, and are not rushing to sell. They are still targeting sales at above $400/t cfr for premium HMS 1&2 80:20, despite the slowdown in demand. A US supplier is heard offering HMS 1&2 90:10 at $405/t cfr, while Benelux suppliers are targeting $395/t cfr. Mills, however, are seen resisting higher prices due to the weak demand and increasing price pressure on steel sales.
Amid a lack of market activity, some participants are expecting a softening in prices. Others, however, do not find a softening in prices likely due to the weak flow of material amid logistics issues, and think prices will stabilise. Further price rises are not foreseen by any industry experts in the near term due to the lack of support from steel sales.
Commenting on logistics issues due to low Rhein River water levels, a Benelux supplier says: "Despite the ongoing issues, I don't think this will have a significant impact on scrap prices. As well as supply, European mills' demand for scrap has also decreased. The drought problem is likely to be solved with approaching rainfall, but scrap demand and steel production are likely to remain low due to energy issues which are expected to worsen in winter."
Dock prices in the Benelux were seen on Wednesday at €315-325/t ($321-326) delivered. Inflow, however, remains low, even by truck.
Short-sea scrap offers were mostly at $380-385/t cfr on Wednesday. An Italian HMS 1&2 80:20 offer is reported at around $390/t cfr, meanwhile.
Despite weak demand, Turkish steel producers are offering rebar at above $670/t fob Turkey actual weight in export markets.
Turkish domestic rebar demand remained lacklustre on Wednesday, meanwhile, with mills' offers at $655-670/t ex-works. Lower levels at around $645/t ex-works are also available from some re-rollers and stockists. Market participants are seen focusing on Turkey's Central Bank's upcoming decision on loan rates on Thursday.
Turkish shipbreaking scrap prices are at $370/t delivered this week. The lira stood at 17.96/dollar at business close on Wednesday.
Source:Kallanish
