Insane growth continues in Turkish scrap metal market

This week, Turkish mills further increased purchase prices for scrap metal on the domestic market, Callanish said. This is mainly due to the weakening of the lira and the sharp rise in the price of imported scrap over the past two weeks.

Meanwhile, the mills continue to buy imported scrap at higher prices. After booking Baltic origin at $ 463 per tonne in Turkey for HMS 1 and 2 80:20 on Monday, the long steel mill on Tuesday bought another cargo of Baltic origin comprising 12,000 tonnes of HMS 1 and 2 80:20 at $ 470 US per tonne and 18,000 tons. shredded $ 490 /t cfr. Another plant in the south bought HMS 1 & 2 80:20 of European origin at $ 475.5 /t cfr for fast shipment, while two plants bought HMS 1 & 2 80:20 of Baltic origin at $ 480. USD /t and premium grade at USD 495 /t cfr. In the meantime, a factory purchased 11,000 tonnes of refueling from the EU at a price of US $ 455 per tonne francs.

Consequently, prices for premium HMS 1 and 2 80:20 in Turkey increased by $ 36 per tonne in a week and by $ 46 per tonne in two weeks.

Scrap demand in Turkey remains high. However, most suppliers backed off in anticipation of price increases.

A Turkish mill says to Callanish: “Whoever comes to the market with an offer sells immediately. I don’t know where we are going. With such an increase in scrap volumes, we lose the chance to sell on the world market, especially in Asia. "

The rebound in scrap metal prices helped revive demand for rebar in both the domestic and export markets. While no major inquiries have been received so far and export demand has lagged behind domestic demand, buyers in major export destinations such as Yemen and Israel are closing deals with Turkish rebar. Some small sales were also heard in Africa. Supported by the domestic market and more expensive scrap, rebar prices generally rose to USD 720-730 per tonne in Turkey.

Demand for rebar in the domestic market remained strong on Wednesday, while supply problems of certain sizes continue to affect. As a result of the increase in scrap prices and the depreciation of the lira on Wednesday, prices for rebar in the domestic market increased to USD 710-740 per tonne excluding VAT. Mills that opened sales in the lower end of this range are expected to have completed sales by lunchtime. Meanwhile, billet prices rose to $ 700 per ton on an ex-plant basis.

Meanwhile, prices for scrap in Turkey have not changed during the dismantling of ships and amount to $ 430-446 per ton of delivered products. However, an upward correction is expected soon. The lira traded at 9.08 per dollar on Wednesday.