Turkish steel markets are in search of direction!

Turkish steel markets continue to seek direction. Prices, which had been on a downward trend for a while, rose again. Will this uptrend continue?

The Turkish steel market continues to seek direction. Prices, which have been on a downward trend for a while, started to rise again with the giant tax investigations in the sector and the movement in exports. Prices, which continued to rise before the feast and this week, remained flat before 15 July.

Shipbreaking and scrap prices in the domestic market continued in the range of $370-390. Scrap purchase prices continued to rise in all factories.

Import scrap bookings were recorded in the range of $407-425.

Rebar, sheet, wire rod and steel mesh prices in the spot market remained flat as of 14 July 2022. Wondering how prices will start next week.

Export movements will determine the direction of steel prices

The fluctuation in exports did not show the expected performance. The slowdown in scrap purchases led to comments that the Turkish steel market remained weak in exports and that the factories could not melt their stocks. It is foreseen by the sector that if the iron that does not enter the soil in the domestic market continues to circulate among the traders, the rapidly recovering prices will decrease again as a possible result.

Another factor is the exchange rate balance.

Although the prices are flat, the exchange rate/TL balance, which has been volatile recently, may stop the TL-based decline.

Global market movements also complicate the balances.

China's steel imports in the January-June 2022 period totaled 5,771 mt, down 21.5 percent year on year.
In June, imports amounted to 791,000 tons, down 36.8% year on year. Chinese steel exports fell in the first half, but are expected to increase by 17% year-on-year in June. In case the expected increase is realized, the strengthening of demand may cause the price of raw materials to turn upwards.

A similar situation exists in Europe. HRC prices also continue at the bottom prices due to weak demand. In addition, the rebar quota allocated by the EU for Turkey in the new quota period has been exhausted.

In short, the supply-demand balance, which will be effective in the recovery of the great loss in the steel markets next week, will be the determining factor, while the export movements, the exchange rate balance and the developments in the raw material markets will be followed.