Posted on 06 Jul 2023
Most Turkish mills have increased their domestic scrap buying prices this week following the Eid holiday. This is mostly a price correction due to the depreciating lira, Kallanish notes.
Imported scrap prices, on the other hand, remain under pressure due to falling steel values in Turkey. Turkish mills are facing weak rebar demand in the first week following a long Eid break and are being forced to decrease their rebar quotes. This is causing them to follow a cautious stance in their scrap bookings and exert pressure on prices.
The latest bookings for HMS 1&2 80:20 at the beginning of the week were concluded at $378.5/tonne cfr Turkey for US-origin and $369/t cfr for EU-origin material. Although some market participants say the EU booking was to compensate for a previous deal and was therefore low-priced, most think this is a normal and reasonable price compared to the US and Baltic bookings at $369/t cfr before the holiday.
Turkish mills' price targets for European material were no higher than $370/t cfr at the beginning of the week. On Wednesday, they decreased their price targets for premium HMS 1&2 80:20 to the low $370s. Some mills even say US material should be at below $370/t cfr, given the negative sentiment in the US domestic scrap market and expectations for price decreases during July trading.
Although mills are pushing for prices below $350/t cfr for short-sea scrap, suppliers are seen resisting. The latest Romania-origin booking was concluded at $354/t cfr Turkey this week.
Rebar demand has had a quiet start to the week. Some mills decreased their offers to $600/t ex-works, while some kept them above $630/t. However, prices at around $585/t were available from stockists that are having difficulties in obtaining loans and are trying to attract buyers.
Turkish shipbreaking scrap prices, meanwhile, stood mostly at $370/t delivered, unchanged from last week. The lira was at 26.09 per dollar at business close on Wednesday.
Source:Kallanish
