Turkiye's imported scrap offers edge down on weak buying appetite

Turkiye's imported scrap market has remained mostly silent this week as steel mills are yet to return to the market from the holidays. Negotiations remained slow in the market; however, no fresh deals were reported. Some participants believe the market sentiment is negative due to low finished steel demand and offers are likely to fall further.

Fresh offers from the suppliers are absent so far, considering the current market situation.

SteelMint's price assessment for US-origin HMS 1&2 (80:20) is at $385-390/t CFR, down by $10-15/t w-o-w.

Market overview

• Local scrap remains strong: Turkish steel mills lifted their domestic scrap purchase prices after the festive period at the beginning of this week. The majority of steelmakers announced a hike of TRY 180?400/t in their domestic scrap prices since the previous revision a week ago. Mills anticipate improvement in finished and semi-finished steel demand.
  
  
• Billet trade still subdued: Domestic billet trade has yet to improve after the holidays. Customers delayed restocking amid negative sentiments in the market. The prices have increased further compared to the pre-holiday level. Mills believe that selling in the domestic market is less likely due to the availability of more cost-effective Russian billet.
  
  
• Rebar prices drop further on negative sentiments: Steelmakers keep pushing their local rebar prices down amid insufficient business activity and weak imported scrap prices. Domestic rebar offers have now been ranging within $700-710/t exw depending on the region. At the same time, Turkiye's long steel producer ICDAS has kept its rebar prices unchanged since the beginning of the week at $720/t EXW Biga and $731/t CFR Marmara.
  
  

Outlook:

Imported scrap prices are likely to fall further as buyers continue to postpone fresh bookings. Meanwhile, suppliers are aggressive to sell material; hence, a further $15-20/t correction in prices is expected in the near term.