Scrap quotes were stable amid lack of buyer activity
Prices for HMS 1/2 scrap on the Turkish market for the week of September 12-19, 2022 remained unchanged compared to the previous week – at the level of $350-355/t. Kallanish price indicator informs about it. Thus, scrap quotes stabilized.
Some participants of Turkish market believe that scrap prices have bottomed out because sharp drops in prices are no longer observed. At the same time, Turkish steel mills expect prices to fall even further, as demand for finished steel is very low.
The week of 12-19 September 2022 was quiet in the Turkish scrap market due to the lack of import trade. Suppliers have resisted selling below $350/t, while Turkish steelmakers do not see this price level as acceptable given pressure on rebar prices and high production costs.
Local steel enterprises believe that the price of scrap should fall to $300/t, taking into account the rebar market. Importers, in turn, note that the supply of scrap metal is decreasing every day, and price reduction is impossible due to the high costs of collecting and transporting of scrap.
Chinese scrap metal market in the week of September 12-19, 2022 began to decrease. The reason was a decrease in demand for scrap due to the return of restrictions due to the pandemic and operational losses of steel plants. As of September 16, scrap prices decreased by 5 yuan/t compared to September 9, to 3,134 yuan/t ($446/t).
As GMK Center reported earlier, Turkey in July 2022 reduced scrap metal imports by 43% y/y. In January-July 2022, the import of scrap metal to Turkey decreased by 21.5% year-on-year.