A cautious wait dominates Türkiye's scrap market this week. While the latest deep-sea scrap deal from Germany indicates a tendency for prices to ease, the revival in the European domestic market has started to shift exporters’ focus.
In sales from Europe, HMS 1&2 80:20 scrap was sold at $343/ton CFR, while in sales from the USA, HMS 1&2 80:20 scrap remains stable at around $347/ton CFR.
China Impact and Cautious Turkish Producers
Pressures originating from China continue to affect the global steel market. The sharp decline in rebar and HRC futures in China has led Turkish steel producers to adopt a more cautious purchasing approach. Rebar prices in China have fallen to approximately the lowest levels seen in the past eight years, and further declines in billet prices are expected in Asia.
European Domestic Market More Attractive
Meanwhile, notable activity is seen in the European domestic market. Despite BDSV’s announcement of approximately a €35/ton drop in scrap prices, many suppliers have not sold at these levels. On the contrary, local producers have been forced to revise spot prices upward. As a result, many European suppliers are now focusing on domestic sales instead of exports. Currently, selling within the German domestic market is more attractive than exporting.
Calmness Prevails Regarding July Shipments
On the Türkiye side, producers appear to be in no hurry regarding July shipments. Market information indicates there are around 20 different cargo offers available. However, market sources also mention that purchases for July have not yet started and some factories have low stock levels. Producers are reportedly delaying purchases, anticipating further price drops in scrap and billet markets. June shipments, on the other hand, have largely been completed.
This situation is expected to exert downward pressure on local scrap collection prices as well. Currently, offers are discussed around €260/ton, with trade mostly occurring in small lots. Large tonnage deals remain limited.
Anticipated Activity Before Eid al-Adha
With Eid al-Adha starting on June 5 and the holiday period confirmed not to be extended, expectations for renewed activity in the market during the second half of the week are rising. The fact that Turkish producers have not yet fully covered their scrap needs for July may act as a factor preventing prices from falling further.
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