Turkey’s import scrap market has been indicating a slight upward movement since the beginning of the current week, with the positive sentiment in the market regarding the price trend gaining strength.
SteelOrbis has learned that an Iskenderun-based Turkish steel producer has concluded a deal for HMS I/II 90:10 scrap at $345/mt CFR, with shredded and bonus grade scrap at $360/mt CFR. This has caused the benchmark HMS I/II 80:20 scrap price to move up by $3.5/mt since yesterday, January 22.
“Overall, expectations for a seasonal rebound in the rebar market are still strong. Turkish mills are in the market seeking scrap. Although we do not expect prices to move up sharply, we think a slight increase may be acceptable,” a source at a major Turkish mill commented. Market players agree that there is no talk of production cuts among Turkish steel producers. A source at one producer even said that 2024 was not a bad year. Meanwhile, the situation in the local German scrap market has not changed much compared to last week’s report, and local prices are confirmed at sideways to slightly upwards. According to sources, players are operating in a balance between scarce demand and scarce offers, meaning that the low availability of scrap is enough to cover the low scrap demand coming from producers. Germany-based scrap sources report that a recovery in their local market may be seen in the second half of February. “Economic uncertainties are strong in Germany, while we are expecting the elections. After a government is formed, German companies are expected to increase their investments which are sluggish now. Energy prices are another factor. Below €300 per megawatt is workable for German mills, but above that there is no sense in continuing to produce,” a source in Germany said.
Billet prices in Turkey lack solidity and clarity given the rather different positions of sellers, depending on whether they are under pressure to sell or not. Turkish integrated mill Kardemir opened 150 mm billet sales at $480/mt ex-works for S235JR and $495/mt ex-works for B420 steel grade. The producer has sold 50,000 mt of billet and the price level is evaluated as being an attractive one overall. The latest deal for billet from Donbass, the Ukrainian territory occupied by Russia, has been heard at $440/mt CFR Turkey. Turkey’s Kardemir opened its rebar sales at TRY 19,460/mt ($546/mt), excluding VAT, earlier today, January 23, closing them after just a couple of hours, having sold around 40,000 mt due to its advantageous payment terms. The producer’s price indicated a decrease of TRY 250/mt ($9/mt) compared to Thursday, January 16. Sources report that the workable rebar prices in Turkey’s Marmara and Izmir regions, including Icdas A.S.’s prices, vary at $550-555/mt ex-works.