Posted on 18 Mar 2020
The market outlook is getting less clear for Turkish mills as measures to combat the spread of the coronavirus in Turkey are becoming more restrictive with each day, as in other countries.
There may be interruptions to loading of already-sold scrap due to anti-virus measures taken by the EU, and it is therefore unclear if Turkish mills will be able to complete the procurement of existing bookings. In the current uncertain environment, mills are not rushing to conclude new deals.
With scrap collection slowing due to the restrictions, demand is also slowing as a result of plant closures in the EU.
“No one knows how long this situation will last,” a Turkish steel producer tells Kallanish. “It is not getting any better; on the contrary, it is getting worse.” Scrap buying is very low on the list of Turkish mills’ priorities, he adds.
“In one of the ports we are loading, we have been informed that agricultural shipments will have the priority in loading,” says a European scrap exporter. “It does not say scrap cannot be loaded but this could change at any time. We are unable to get accurate information, plus scrap surveyors are unable to travel. Current market conditions are so confusing.”
Another scrap supplier from the Baltic says: “I have a cargo but nobody’s interested to buy. Although buyers have no intention to purchase, they express their price ideas for HMS 80:20 at $250-260/tonne cfr Turkey today. Tomorrow the prices will be lower, I guess.”
Coupled with the coronavirus spread, the sharp depreciation of the lira has stopped almost all trading activity in the Turkish domestic market as no one can foresee how the situation will develop. Although the situation in export markets is no better, a Turkish steel producer has managed to sell 50,000 tonnes of rebar to Singapore this week (see separate story).
No recovery is expected in the Turkish scrap market in the near term due to the ongoing uncertainty, with scrap prices predicted to remain under pressure.
Source:Kallanish
