Turkey: Scrap import market quiet as buyers postpone fresh bookings

Turkish steelmakers remained absent on the scrap import market and no fresh cargo booking was recorded this week. Offers are likely to climb down further in the absence of buyers and negotiations are absent from both sides as market participants preferred to retreat to the sidelines. Mills are postponing fresh bookings, as per SteelMint assessment.

US and Baltic scrap suppliers have already decreased their target levels below $640/t CFR for HMS 1&2 (80:20), although reduced offers could not spur buying activity.

Mills are trying to achieve sufficient discounts amid sluggish sales of finished steel products, while suppliers are not ready to lower offers.

Market overview

• Lira-USD firm: The national currency has witnessed stability over the last couple of weeks. Currently, the lira is being traded at 14.68 against the US dollar.
  
  
• Domestic scrap prices continue to dip: Domestic prices for scrap in Turkey decreased towards the end of last week. This was the impact of the downtrend in imported scrap prices and limited trade activity in finished steel. The majority of Turkish steel producers have reduced purchase prices for local scrap. Sources believe that the downward spiral may continue as no immediate improvement in the situation could be expected.
  
  
• Rebar prices plunge: Turkish finished steel producers have announced a sharp cut in local rebar prices on the back of almost nil buying activity and the downturn in the scrap market. The country's largest rebar producer, ICDAS, has decided to cut prices by around $25/t. The company has set offers at $940/t exw Biga and $976/t CFR Marmara. Rebar prices are under pressure due to sluggish demand and prevailing bearish mood in the scrap market.
  
  
• Billet prices under pressure: A sharp drop in import prices of billet was observed due to the aggressive stance adopted by Russian suppliers. Activity in the local billet market has almost stopped under the pressure of high costs. On the back of a sharp fall in the import market, the latest prices were set at $870/t exw with no interest from most buyers. Discounts are not a realistic option either due to high costs.
  
  

Outlook

Imported scrap trade is likely to resume after the Eid holidays as steel production in Turkey gathers pace.