Turkish imported scrap prices extended their decline this week as weak finished steel demand, softer export prospects and cautious mill buying continued to pressure the market. MESTEEL assessed HMS 1&2 (80:20) import prices at USD 375 per ton CFR, down from USD 380 per ton CFR a week earlier.
Trading activity in the deep-sea scrap market remained limited despite a handful of transactions reported during the week. Turkish mills continued to adopt a cautious purchasing strategy amid weak order books and thinning profitability.
Market insiders said domestic and export demand for finished steel products remained subdued despite recent price reductions. The implementation of the European Union’s revised steel quota regime has further clouded export prospects, increasing pressure on Turkish mills to seek alternative markets, keeping scrap purchasing activity subdued.
Although some analysts believe the decline in scrap prices could begin to stabilize as the new EU steel quota regime may encourage European steelmakers to increase production and raw material purchases, any sustained recovery will ultimately depend on an improvement in regional steel demand. However, other market insiders expect Turkish imported scrap prices to remain under pressure until finished steel demand shows a meaningful recovery.
Reflecting weaker market fundamentals, MESTEEL assessed Turkish export rebar prices at USD 580-585 per ton FOB, while wire rod export prices were assessed at USD 595-600 per ton FOB, both edging lower week-on-week amid weak sales. Market sources said mills remain willing to negotiate further discounts to secure export orders.