Turkiye: Import scrap market quiet as demand softens

The Turkish imported scrap market remains quiet in the absence of buying inquiries. However, a few small-parcel deals continued to happen despite the downward correction in prices even as Turkish steel producers held back from fresh procurements.

Considering the downtrend in the finished long steel export market, global scrap prices are subdued, with limited deals seen. Meanwhile, Pakistan and Bangladesh-based steel producers are cautious but also hopeful that the market may bounce back after the Eid holidays.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $435/t CFR Turkiye, slightly down w-o-w.

Recent deals-

• A recently booked bulk cargo from Europe, comprising around 16,000 t HMS 1&2 (80:20), was booked at $418/t CFR by an Eastern Marmara-based steel producer.
  
  
• A US-origin bulk cargo was sold to a Mediterranean-based steel mill comprising 15,000 t of HMS (80:20) at $439/t and 15,000 t of shredded at $459/t CFR. The cargo was booked for May shipment.
  
  

A few market participants believe that the slight recovery in the rebar export market was one of the reasons for Turkiye resuming deep-sea scrap bookings. Domestic demand for rebar is still weak because of the ongoing Ramadan period, which traditionally slows the market down.

On the other hand, suppliers are also not aggressive at the moment to sell their material, as they are looking for alternative markets for more optimal prices. However, keeping cargo in ports is too expensive and so some suppliers have decided to sell it, SteelMint learned from sources.

Domestic market under pressure

• Rebar prices trend down: The downward trend in prices continues in Turkiye's domestic rebar market as mills face sluggish demand from domestic end-users. Steelmakers lowered rebar offers further to $690-705/t exw depending on the region. Offers from major steel producer ICDAS remained unchanged at $700/t exw Biga and $715/t CFR Marmara.
  
  
• Billet prices drop: The domestic billet market continues to move down following the constant decline in finished steel prices and soft demand. Market participants anticipate that it may take time for positive signs to emerge. Turkish billet suppliers were offering at $630-645/t exw versus $630-660/t exw a week ago.
  
  
• Lira depreciation: The Turkish lira continues to decline in the currency exchange market. Currently, the lira is being traded at 19.3 against the USD compared to 18.9 a month ago.