Turkish mills' domestic scrap buying prices remain unchanged, while the pressure on imported values is increasing with each day Turkish mills keep purchases on hold, Kallanish notes.

Although domestic scrap buying prices remain stable on a TRY basis, they are falling on a USD basis due to the continuing depreciation of the lira.

Turkish mills are continuing to halt imported scrap purchases due to falling rebar prices and unfavourable conditions in long steel markets. On the other hand, Turkey's absence in the scrap market in the last two weeks is increasing pressure on scrap suppliers. Some are seen decreasing their offer prices gradually, while others are trying to hold fast due to weak scrap inflow in the EU and US, and Turkey's obvious requirement for scrap.

Some suppliers of premium HMS 1&2 80:20 are seen offering at above $460/t cfr Turkey, although this seems unworkable under current conditions. On the other hand, there are offers from the EU and UK at $445-452/t cfr levels. Amid weak demand in their largest export destinations, European suppliers seem more pressured and flexible with their offers, reducing their prices despite the euro strengthening against the dollar.

Most market participants do not find prices above $450/t cfr workable in the Turkish market, even for premium HMS 1&2 80:20.

A supplier tells Kallanish: “Mills' appetite for scrap purchases is very weak. They are not even inquiring about short-sea scrap. Prices are unlikely to improve under current conditions. I am expecting to see $430/t cfr levels soon.”

Bonus grade from a short-sea origin was concluded at around $450/t cfr Turkey earlier this week.

Amid a large number of offers, supply in the Turkish market far outstrips demand. This coupled with softening billet prices in the market are allowing mills respite from booking scrap.

Amid weak demand, rebar prices weakened further in the Turkish domestic market on Wednesday. Although most mills tried to keep their official prices at $745-750/t ex-works, they are seen offering discounts on firm bids. Consequently, offer prices at as low as $730/t were also available in the market.

Turkish shipbreaking scrap prices were unchanged at $452/t delivered on Wednesday. The lira was meanwhile at 19.04 per dollar at business close on Wednesday.

Turkish mills' new cutting (DKP) scrap buying prices
Producer 15 March (TRY/tonne) 22 March (TRY/t) Change (TRY/t)
Erdemir 8,600 8,600      0 
İsdemir 8,000 8,000      0
Kardemir 8,550 8,550      0
Çolakoğlu 8,130 8,130      0
Kroman 8,040 8,040      0
Asil Çelik  8,400 8,400      0
Diler 7,950 7,950      0
Mescier 7,650 7,650      0

Source: company information