Scrap Symphony: Turkish Mills Dance Through Price Turbulence
Turkish steel mills maintain steady domestic scrap prices while import markets soften, reflecting tepid buying sentiment. Most local facilities have kept their procurement rates unchanged from previous levels, with only one southern mill reducing its buying price. The market currently processes approximately 2.5 million metric tons of scrap monthly, with domestic sources contributing about 1 million metric tons.
Import activity remains subdued, last week saw renewed market engagement as suppliers and mills began position checks. Turkey requires approximately ten cargo shipments, averaging 30,000 metric tons each, for November delivery, with December procurement yet to commence. European suppliers target HMS 1&2 80:20 sales above $365 per metric ton CFR Turkey, facing competition from lower offers around $360 per metric ton. Monthly import volumes typically range between 1.5-1.8 million metric tons.
Market dynamics show pressure on scrap values amid weakening rebar prices, currently at $615-630 per metric ton ex-works. Domestic stockists express concern over halted demand, despite available discounts. Turkish shipbreaking scrap prices have declined to $365-385 per metric ton delivered, down from last week's $365-390 per metric ton range. The shipbreaking sector contributes approximately 200,000 metric tons monthly to the domestic supply.
The Turkish lira traded at 34.29 against the dollar, while US and Baltic suppliers seek bids above $370 per metric ton CFR, highlighting market uncertainty. US suppliers traditionally provide 400,000-500,000 metric tons monthly, while Baltic regions contribute around 300,000 metric tons. Industry experts suggest European domestic market challenges and euro weakness continue influencing regional scrap trade patterns.
Steel mills maintain average inventory levels of 250,000 metric tons, representing roughly three weeks of consumption. Port facilities can handle up to 100,000 metric tons daily, with storage capacity for 500,000 metric tons. The domestic steel sector operates at 70% capacity utilization, requiring approximately 3 million metric tons of scrap monthly for full operations.
Looking ahead, market participants anticipate annual scrap demand to reach 30 million metric tons, with domestic sources expected to provide 12 million metric tons. The remaining volume will depend on imports, primarily from Europe, the US, and Baltic regions, which collectively can supply up to 18 million metric tons annually.
Bron: email van Oreaco