Calm Cruise and Uncertainty
According to SteelRadar's weekly market commentary, the steel market has been quiet this week, with low volumes. Although some European scrap shipments were offered, no details about these transactions were shared. Turkish steel mills remained largely cautious, although they continued to communicate with the market.
One of the most important agenda items in the market was the new tariffs that the US may impose on Türkiye. Moreover, the rapid strengthening of the euro and its impact on European markets sparked discussions among market participants.
Price Decline in Scrap Market and New Measures from Europe
Benelux ports tried to bring scrap prices down to €300/ton following the euro appreciation. The European Commission decided to increase import controls to prevent excess steel from flowing into the domestic market. In the European domestic market, restocking activity for HRC increased. This move was supported by positive demand trends, especially from service centers to end-users.
Rebar Market Expectations for Stagnation and Decline
The rebar market remained weak due to the long holiday period, political uncertainties and high financing costs. Prices fell between $5 and $10, in line with market expectations. While some market participants expect demand to pick up in the short term, most experts predict that recovery will not be possible until May or June.
Decline in the Billet Market and Calm in the Chinese Market
Indonesian supplier Dexin Steel lowered its billet sales prices to Türkiye to $475 USD until the end of June. In China's billet market, prices were steady while trading details were not shared due to a public holiday in China.
Tariff Impact and Falling Prices in the US Market
The impact of the new US tariffs weakened market expectations. The exemption of scrap and finished steel imports under the USMCA (US-Mexico-Canada Agreement) added to the negative impact. In the US domestic market, HRC prices fell by $20, indicating a decline in buying interest from service centers and end-users amid high inventory levels.
Turkish Market: Uncertainty Continues
The Turkish steel market was quiet during the week due to the US tariff developments and low trading volume after the holiday. Political risks and economic uncertainties are hampering the market's recovery efforts. The new US tariff measures, although strengthening the euro, seem to have had a negative impact on the Turkish domestic market. The market outlook remains uncertain, but clarity may gain further next week.
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