🔻 Rebound Movement on the Agenda Following Sharp Decline
The recent sharp depreciation in the Turkish imported scrap market has pushed prices below the $325 level, highlighting selling pressure and weak demand. Key drivers behind this downturn include financial tightening in Türkiye, loss of competitiveness in the Balkan market, and supply pressure from China.
However, a shift in sentiment has begun with diplomatic easing between the U.S. and China, recovery in Chinese futures markets, and the withdrawal of billet offers. Technically, the market has entered an oversold zone, signaling a limited correction potential towards the $330 level.
Restocking and Export Push Resumes
Buyers in Türkiye’s domestic market are beginning to see current levels as a temporary bottom. Reports of high-volume transactions in İzmir and İskenderun indicate that restocking activities are gaining momentum again. Meanwhile, the drop in Turkish rebar prices below $430/ton has helped regain a competitive edge in foreign markets.
European Scrap Tightness Supporting Prices
Although prices have retreated in deep-sea markets, scrap supply in Europe is tightening. Especially at Benelux ports, the reversal of previous price cuts has led to renewed upward movement in offer levels. This suggests that the market is trading near its bottom and that further price concessions remain limited.
Eyes on May and Q3 Quotas
Toward the end of May, European buyers are expected to turn to Türkiye again for third-quarter quota loadings. New demand, particularly from Balkan countries interested in Turkish steel due to quality and certification advantages, could reinforce recovery expectations in the market.
Signals from China’s Politburo meeting, the pace of restocking in Türkiye, potential additional demand from Europe and the Balkans, and the progress of global trade negotiations could all support the balancing process in both export and domestic markets.
Recent Purchase Prices:
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From Denmark to the Aegean region: $348/ton CFR Türkiye for 80:20 scrap
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From the UK to the Mediterranean region: $335/ton CFR Türkiye for 80:20 scrap
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From Germany to the Aegean region: $333/ton CFR Türkiye for 75:25 scrap
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From Europe to the Mediterranean region: $320/ton CFR Türkiye for 80:20 scrap
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From the USA to the Marmara region: $327/ton CFR Türkiye for 90:10 scrap
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