Posted on 07 Nov 2024
Some Turkish mills have decreased their domestic scrap buying prices since last week, while import values have strengthened, Kallanish notes.
A scrap booking from France was heard in the Turkish market on Wednesday. A Marmara mill bought 18,000 tonnes of scrap on Monday comprising HMS 1&2 80:20 at $359.5/tonne and shredded and bonus grade at $381.5/t cfr Turkey.
Following Donald Trump's victory in the US presidential election, Turkey’s scrap market is seen focusing on China. Most market participants expect activity to remain weak until China's announcement of a new economic stimulus package this week. Expectations for stronger stimulus measures have grown following Trump’s re-election. However, Trump's victory poses a threat to China’s economy in the medium and longer term.
Turkish mills are seen expecting Benelux suppliers to decrease their prices due to the sharp depreciation of the euro after Trump's victory. European suppliers' offers were at around $365/t cfr Turkey for HMS 1&2 80:20 on 5 November. Turkish mills' price targets for EU-origin HMS 1&2 80:20 are now even lower than the latest France-origin deal. Although some suppliers, targeting higher levels, have stepped back from the market, mills think there is a sufficient number of cargoes to meet their requirements.
In the short-sea market, the latest deals were concluded at $345/t cfr Turkey on 5 November. However, mills decreased their bid prices to below $340/t cfr due to the weaker euro, at $1.075 on Wednesday.
In the EU, collection prices are hovering at around €290/t in the Netherlands and Belgium, and €285/t in France, unchanged from earlier this week.
Meanwhile, a 50,000t billet cargo from Vietnam was bought by a Turkish mill at $500-505/t cfr this week.
Turkish mills are struggling to sell steel abroad and in the domestic market. Amid poor demand and Kardemir's rebar price cut, mills decreased their rebar prices by another $5/t on Wednesday to $600-620/t ex-works. This is versus $620-640/t a week earlier.
Turkish shipbreaking scrap prices stood at $365-380/t delivered on Wednesday, down from $365-385/t a week earlier.
The Turkish currency was pegged at TRY 34.25/dollar by Wednesday business close. Interestingly, the lira diverged positively from emerging currencies, being one of few currencies that appreciated against the dollar on Wednesday.
Source:Kallanish
