The Turkish imported price continued to fall last week as local mills prepare to reduce their output during the winter on the back of little demand in the export markets as well as domestically.

Last week the Kallanish index registered a new decrease of some $10-15/t for Turkish scrap, returning close to the record low of the year of $300/t CFR Turkey registered in mid-August.

Since the beginning of November the index lost over $30/t, confirming that despite the recovery seen in early Q4, the sentiment in the Turkish market continues to be very difficult. As reported the US is maintaining in place the 50% duties for Turkish material, limiting therefore the exports, with a direct impact also on the global scrap and longs markets.

Last week Irepas, the association grouping market participants within the scrap and longs businesses, confirmed that the outlook for Turkey is bleak going into 2019 and that production at the mills there is expected to be reduced.

“According to a US presidential announcement, the reason for imposing a doubling of tariffs on Turkish exports to the US was the sudden devaluation of the Turkish lira, a reason which is now no longer valid. At the same time, Turkish exports to the US are down by about 55 percent, a far sharper drop than seen for the exports of any other country,” the association said. “However, the US market remains blocked for Turkish exports. On the other hand, the prevailing prices in the Far Eastern market are now below the cost of production for Turkish producers. On top of these issues, domestic consumption in Turkey has almost stopped and the hit coming from vanishing domestic consumption is very hard on mills. As a result, Turkish mills are not left with much option but to suspend production in the coming months.”