While the global scrap market slows down, Turkish import scrap prices increase

In the January-September period, the top 18 countries that are the largest scrap importers (excluding purchases within EU countries) purchased 41.7 million tons of this raw material. This figure was recorded as a 3% decrease compared to the same period of the year.

While Turkey continues to be the world's largest scrap buyer, scrap revenue in the country decreased by 13% compared to the first nine months of 2022. The current figure decreased to 14.5 million tons. Many reasons such as production cuts by factories in Turkey, shrinkage of the domestic market, high inflation and energy costs were reflected in the figures of scrap purchases.

As for prices, it was seen that US scrap dropped to $350, then resisted the pressures and made an attack to $365. It was noted that the scrap dealers withdrew, did not give in to the pressure and stood back, and eventually found the offers they wanted.

There were busy days for scrap in Turkish markets this week. According to the information obtained by SteelRadar, many links were shared in the market one after the other today. All connections made since Monday are listed as follows;

Camden USA – Iskenderun Region Producer

25k 90/10 at 367

8k Shred at 385

End Nov-Beg Dec

Estonia – Iskenderun Region Producer

$365 for 80:20

$385 for bonus

USA – Marmara Region Producer

$369/t 80:20

EU – Marmara Region Producer HMS 80/20 $361

Bonus $386

Ex-Holland

Camden USA – Marmara Region Producer HMS 80/20 $361

$370/t 80:20

Romania- CFR Türkiye

HMS 1&2 (80:20) $348/

(Short sea)

Bulgaria- (CFR Türkiye)

HMS 1&2 (80:20) $345/ton

(Short sea)

After all these connections, there were rumors in the market that the new offers were at $380, while experts in the market said that they did not think scrap would be sold at $380, and that perhaps $375 for the US/Baltic and $370 for European scrap could be realized.

A different market expert commented to SteelRadar on the subject as follows: "Now the main issue here is America, if they leave, there will be no panic in Europe and $380 may be seen."

According to the SteelRadar analyst, an artificial increase may occur because the contraction in steel production in Turkey, the decline in exports and the inability to consume the product, high loans and energy costs, and the revival of demand in the near future and the continuity of the revived demand are not considered very possible. Apart from this, if there are balance changes and economic movements with the steps taken by the Turkish Ministry of Commerce and the Central Bank within the scope of the MTP, more permanent increases may be seen for scrap. However, when we look at the current picture, it is seen that some speculations have been made to accelerate the market and sensations have spread that push for panic buying.