Turkish Scrap Market Activity Pauses

SEATTLE (Scrap Monster): Activity in the Turkish scrap market has had a poor start to the week after Turkish mills completed July-shipment cargo purchases last week.

Mills are now prioritising finished steel sales before turning their attention to August-shipment scrap bookings, notes Kallanish.

Turkish buyers anticipate a downward adjustment in European scrap prices amid stagnant EU steel market conditions and expectations of lower July scrap settlements. However, the continued strength of the euro is preventing meaningful price declines. A Netherlands-origin HMS 1&2 80:20 cargo was reportedly concluded last week at $337.5/tonne cfr Türkiye, though this deal remained unconfirmed at the time of publication.

While Turkish mills are pushing for offers below $335/t cfr, most market participants, especially European suppliers, see workable price levels at $336-338/t cfr, as previously reported. The euro's climb to $1.18 on Tuesday has left European exporters with little choice but to reduce dock prices, as Turkish buyers are unable to absorb higher cfr levels.

European and UK suppliers are exploring alternative markets such as Egypt and Saudi Arabia, yet none are able to fully compensate for Turkish demand. Additionally, other key destinations like India, Taiwan, and Vietnam are experiencing weak scrap demand due to sluggish finished steel sales and competitive billet import offers.

On the US front, exporters are seen trying to maintain their prices at above $345/t cfr Türkiye amid higher steel prices in the US and expected firm scrap buying prices of US mills during July trading.

In China, production cut announcements and CISA’s proposal to restrict billet exports have done little to boost confidence, as inconsistencies continue to persist.

Meanwhile, weak domestic steel sales and the recent mill bankruptcy news in Türkiye continue to weigh on sentiment. Although Turkish mills have announced higher rebar list prices, workable levels are failing to increase. On Tuesday, amid lacking demand, mills’ workable prices stood at $530-555/t ex-works.

Meanwhile, Turkish mills have turned their focus to monitoring EU third-quarter quota allocations after completing shipments. With the help of the stronger euro, they are hoping to see a near-term recovery in European steel demand for the October quota term.

Courtesy: www.kallanish.com