Turkish scrap prices approach 2024 lows

Scrap prices in Turkey are under pressure amid weakening steel prices and a lack of steel demand. Turkish scrap market sentiment was quite negative on Tuesday.

Turkish mills’ appetite for scrap purchases remains poor despite their ongoing requirements for December-shipment cargoes. The sufficient availability of offers to meet their needs provides them with room to delay their purchases and focus on steel sales. However, steel sales remain stagnant in both export and domestic markets.

Some market participants believe prices have already fallen below $350/tonne cfr Turkey for HMS 1&2 80:20 on confidential deals.

A European supplier has sought $350/t cfr for HMS 1&2 80:20 but received no interest from buyers. Amid firm dock prices, some European suppliers are heard resisting going below $350/t cfr. Baltic merchants are struggling to keep their prices at above $350/t cfr amid the weak euro per dollar and the latest Denmark-origin sale at $353/t cfr last week.

A US supplier offered HMS 1&2 80:20 at $355/t cfr on Tuesday. Later, on Tuesday night, the supplier is confirmed to have sold HMS 1&2 80:20 at $353/t and shredded and bonus grade at $373/t cfr Turkey to a southern Turkish mill.

A trader tells Kallanish: “The market is very depressed after the China disappointment. Meanwhile, despite claims to the contrary, all billet purchases from Asia have arrived [in Turkey], with only a 15-day delay seen for two cargoes. Consequently, a weaker China is now more meaningful for Turkey.”

In the short-sea market, the latest deal from Romania was concluded at $340/t cfr Aliaga. Turkish mills are now seen placing bids at below this level.

A supplier says: “I have the feeling that we are close to the bottom. In the past, prices have always recovered from the levels they are currently.”

However, another supplier believes price declines will continue.

A third supplier notes Turkey will buy January-shipment cargoes at higher levels, as European scrap demand will also resume in the new year.

A Turkish mill source says: “A large mill halted production at one of its furnaces and is not in the market, while another major mill is not buying scrap either. This means a lot for the Turkish scrap market. Scrap supply is well above demand. No mill would pay $350/t cfr any more, even for US material.”

A Benelux supplier finds workable prices for HMS 1&2 80:20 at $347-349/t cfr from the EU, $350-351/t cfr from the Baltic and $354-355/t cfr from the US.

A mill executive, however, expresses his price target for deep-sea scrap at as low as $340/t cfr.

Rebar prices continued to decline on Tuesday amid lacking rebar demand. Mills’ offers stood at $585-605/t ex-works, down from $595-615/t a week ago. However, $580/t was available in the market from some western Turkish stockists.

Source:Kallanish