Import scrap prices in Turkey have remained under pressure and have continued to soften since Turkish mills have been experiencing difficulties in selling their long products particularly abroad. Moreover, billet prices, though not so strong, are still not low enough for Turkish mills to begin purchases, especially from Asia.
The most recently disclosed import scrap sale has been closed by a Turkish mill from the Baltic region, reportedly Lithuania, and the buyer has paid $336.5/mt CFR for HMS I/II (80:20) and $356.5/mt CFR for bonus grade. As a result, the ex-Baltic import scrap price in the Turkish market has slid from $337-340/mt CFR earlier. The latest deal price from the EU has been reported at $333/mt CFR for HMS I/II (80:20), and so the prices are aligning with each other.
The current billet production cost in Turkey is evaluated at $495-500/mt maximum for electric arc furnaces, while the most recent import billet prices, particularly from Asia, have been reported at $480-500/mt CFR. Given February shipments for such billet and therefore the long lead time, Turkish mills do not see themselves in a position to purchase large billet cargoes and have been exerting more pressure on scrap prices. However, it is largely believed that import scrap prices are unlikely to move down much more from the current levels. “We seem to be close to the bottom, but this does not mean that mills have got what they wanted and that their sales will be more profitable. Rebar prices will not improve much in the coming months. There may be some hopes for the local market once the season comes, but the export side looks much more complicated,” a trading source told SteelOrbis.