The market is under pressure due to weaker raw material prices. Turkish buyers are contracting scrap cheaper every week but still expect further decreases. Import prices of HMS 80:20 scrap in Türkiye have been down by $15-20 from last week. Since the beginning of the week, new offers for HMS 1/2 grade scrap have been announced at $370-376/t cfr. US metallurgists, on the other hand, said that they expect a $20-30 drop in scrap prices in March and that the rebar market may also see a decline and should be prepared for it. The double weakness in domestic and international markets caused both markets to deteriorate day by day.
However, a flat price trend is expected in the Turkish import steel scrap market in March. Buyers have replenished their stocks for the required steel production volume in the current conditions and may reduce their trading activity in the coming weeks. Pressure factors on suppliers will continue to be the decline in iron ore offers as well as the projected fall in scrap cost in the US domestic market. Suppliers may provide additional discounts at the beginning of the month to offset import scrap costs. Then, as demand for scrap with post-Ramadan delivery increases, a return to previous price positions and a tilt of the market scales towards suppliers is not ruled out.
Recent contacts made by Turkish steelmakers are as follows;
Deals from the US to the Aegean region;
HMS (80:20) scrap at $385 per tonne CFR Türkiye,
HMS (80:20) scrap at $385 per tonne CFR Türkiye,
HMS (85:15) scrap at $378.5 per tonne CFR Türkiye,
Deals from Europe to the Marmara region;
HMS (80:20) scrap at $381/t per tonne CFR Türkiye,
HMS (80:20) scrap at $376 per tonne CFR Türkiye,
HMS (80:20) scrap at $381 per tonne CFR Türkiye,
Deals from the UK to the Marmara region;
HMS (80:20) scrap at $368/t per tonne CFR Türkiye,
Agreements from the US to the Marmara region;
HMS (80:20) scrap at $380/t per tonne CFR Türkiye.
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