Import scrap prices in Turkey have been falling since the beginning of July due to very weak demand, with HMS I/II 80:20 scrap prices in the most recent ex-Europe deals declining to $322/mt CFR. From $352/mt CFR at the beginning of July, ex-US HMS I/II 80:20 scrap prices have decreased to $328/mt CFR in the deals concluded last weekend against the backdrop of weak demand and the downward pressure exerted on prices.
While domestic scrap prices for August in most US regions have started to be clarified, it is observed that domestic scrap prices in the US have declined by $11-21/mt - despite strong domestic demand - due to the weakness of international demand in July.
Although European scrap suppliers have reduced their export prices for HMS I/II 80:20 scrap to around $322/mt CFR, water levels on the Rhine are significantly low, hampering the vessel trade in Europe and increasing shipment costs.
Sluggish domestic rebar sales constitute the main reason for Turkish producers’ caution on the issue of scrap purchases. Meanwhile, Turkish mills have failed to receive rebar demand from the export markets to which they generally ship large tonnages, such as the US. Although they continue to conclude rebar sales to markets to which they usually ship small tonnages, such as Africa and Latin America, demand for Turkish rebar from such markets has failed to reach strong levels. Under the current circumstances, Turkish steelmakers are maintaining a cautious stance towards scrap purchases. On the other hand, considering that Turkish steel mills’ purchases so far for September shipments are quite insufficient and given the approach of the Feast of Sacrifice holiday - which will last a full week starting from August 20 - import scrap demand in Turkey is expected to increase slightly before the holiday.