Scrap metal prices continue to rise in Turkey

Since last week, all Turkish factories have continued to increase the purchase prices for scrap in the domestic market against the backdrop of a continuing increase in import prices.

Mills' demand for domestic scrap remains strong, and they are also actively buying consumables such as ferroalloys.

The upward trend in prices for imported scrap continues due to new orders. The West Turkish mill is confirmed to have bought a European-origin HMS 1&2 in 80:20 on Dec. 2 at a price of $379.5 per ton in Turkey. Freight of French origin confirmed to have been booked by southern plant this week at US$380/ton for 9,000 tons HMS 1&2 80:20, US$400/ton for 6,000 tons of crushed material, and US$400/ton for freight for 7,000 tons bonus. for shipment in the second half of January.

On Wednesday, European suppliers tried to sell HMS 1&2 80:20 for over $380/t, while offerings of premium HMS 1&2 80:20 from the Baltics and the US are above $390/t cfr.

With the exception of two plants that are more active in buying scrap, most producers offer scrap at prices below $380/t CFR. These levels are unlikely to be accepted by suppliers, with $380-385/t CFR, depending on origin, appearing more acceptable on Wednesday.

At the same time, orders for scrap metal for coastal navigation are about $360-365/t per fr.

While prices remain stable, scrap metal suppliers, pointing to a lack of supply, approaching holidays and rising stock prices, do not see price cuts likely in the near future.

One of the suppliers says: “Suppliers also have a difficult situation. Suppliers are wary of selling before buying as the prices of the collections are rising every day in a time of limited supply. It is impossible to sell without knowing the cost. On the other hand, what if the price trend reverses after buying? The business has become the perfect game."

The mill says: “There is no trust in the market. Now that domestic demand for rebar has also declined and prices come under pressure, we have to wonder how long Turkey can afford to raise scrap metal prices?”

December trading in the US began with an upward trend, and prices for docks in the Benelux continue to rise. European exporter dock prices were mostly €310-320/t ($326-337) delivered on Wednesday, compared to €300/t a week earlier.

While end-user and export demand for rebar remains weak, seller demand, which has driven the market since last week, also eased after Monday. While most Turkish mills raised rebar prices to $690/t ex works on Monday, they offered rebates on Wednesday and cut prices to $675/t amid weak demand.

However, some market participants expect end-user demand to recover in the new year as they believe end-users will receive government support as a promise in the upcoming elections.

Turkish scrap prices have adjusted several times since last week and reached $370-$375 per ton for delivery on Wednesday. The lira was virtually unchanged from last week at 18.64/$1 at the close of trading.