Limited steel scrap supply keeps import prices in Turkey high

Turkish steel producers continued to face weak demand for finished steel products in the export markets and locally

Limited supplies and relatively active alternative markets have kept prices for imported recyclable steel elevated, sources told Fastmarkets on Tuesday August 23.

A new deal for US-origin scrap at $402 per tonne cfr, made on August 22, came to light after the indices were filed on August 23, and any correction in the indices for Northern Europe- and United States-origin imported scrap was expected to be reflected during Wednesday’s pricing session.

Meanwhile, Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey, was calculated at $394.72 per tonne on August 23, unchanged day-on-day, but down by $5.01 per tonne from $399.73 per tonne on August 16.

The corresponding calculation of the daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was $389.06 per tonne on Tuesday, also unchanged day-on-day and also down by $5.01 per tonne from $394.07 per tonne one week earlier.

This left the premium for US material over European steel scrap at $5.66 per tonne on August 23.

According to Worldsteel data, Turkey cut its steel production in July by 20.7% year-on-year.

A producer source said that this trend was expected to extend into August and September because of the weak demand for finished steel.

What to read next
Asian steel hot-rolled coil prices have had difficulty rising in recent weeks due to a number of major themes in the market, sources told Fastmarkets.
A new Chinese state-owned enterprise (SOE) called China Resources Recycling Group (CRRG) has been established to build a national platform for recycling and reusing resources, according to an announcement from Chinese officials on October 18. While details of the company's specific plans remain scarce, market participants remain concerned about weak market fundamentals, sources told Fastmarkets..
China’s domestic and export steel hot-rolled coil prices rose on Monday October 28, reflecting a robust performance in the futures market, but the upward price movement did not translate into increased demand.
Chinese stainless steel prices fell in the week ended Wednesday October 23 in both the domestic and export markets, in response to weak demand and lower-cost raw materials, sources told Fastmarkets
“Everyone expects an upturn in terms of demand but the market is not turning up,” one producer said.
Nickel pig iron (NPI) prices in China continued to climb in the week to Friday October 18, on an increase in tradbg amid positive sentiment, sources told Fastmarkets.