Posted on 20 May 2024
Scrap prices in Turkey followed a more or less stable trend in the latest deals, at $380-382.5/tonne cfr Turkey for US material and $375/t cfr for EU-origin HMS 1&2 80:20, notes Kallanish.
However, the market is now debating the next price movement. This follows the latest developments such as the announcement of several policies to stimulate the real estate market in China and Israel’s plan to terminate its free trade agreement with Turkey.
Although some market participants expect China's announcement to support market sentiment, others believe it will not have a positive impact on the Turkish steel market, especially on long steel. This comes as Turkish mills, which have limited export destinations left open to them, and whose only hope was the reopening of the Israeli market, have had their hopes dashed with developments in Israel.
Israel has become a major market for Turkish steel exports, with 1.2 million tonnes of steel exports last year, especially after Turkish producers were muscled out of the American and Asian markets.
A US supplier, arguing that offers for quality scrap are limited, is heard targeting to sell HMS 1&2 80:20 at $385/t cfr Turkey after the deal at $382.5/t. A European supplier, believing that China will support global scrap market sentiment, increased its price target for the same grade to above $380/t cfr, although most market participants do not find this achievable.
Dock prices in the EU, meanwhile, stood mostly at €305-310/t ($331-337) delivered on Friday.
In the short-sea market, a northern Turkish mill is heard to have bought Romania-origin scrap at around $363-365/t cfr.
Although a further fall in scrap prices seems unlikely, a rise in the market is also doubted as Turkish mills are struggling to sell steel and decreasing their offer prices. Consequently, mills are expected to complete June-shipment scrap purchases at current levels.
Source:Kallanish
