Scrap import prices in Turkey declined this week, pressured by subdued buying activity from steel mills amid weak finished steel demand. Prices were assessed at USD 365-370 per ton CFR, down from USD 380 per ton CFR last week.
Turkish mills remained cautious in their scrap purchases, with market sentiment weighed down by several factors: domestic political uncertainty, the U.S. decision to impose broad tariffs on imports, and a recent hike in energy prices announced by Turkish authorities. These developments have dampened confidence in the finished steel segment, further slowing demand.
Just a week ago, scrap suppliers were optimistic that downside would be limited. Their confidence was supported by higher collection costs, a stronger euro, and the expectation that Turkish mills would soon need to restock scrap. However, with end-user demand for finished steel still weak, mills are increasingly turning to more affordable alternatives such as imported billets from Asia and other regions, in an effort to keep costs under control, especially after the Turkish government raised electricity prices by 10pct and gas prices by 20pct, effective April 5.
Despite the drop in scrap prices, Turkish export offers for long steel products have remained largely unchanged, as mills factor in rising energy costs. Rebar export offers are holding at USD 575-580 per ton FOB, while wire rod is quoted at USD 585-590 per ton FOB. However, market insiders note that mills are becoming more flexible and increasingly open to offering discounts on firm bids.