Scrap metal prices jump in Turkey

Turkish HMS 1/2 scrap metal import prices have risen sharply after falling sharply over the past two months. According to the data, the average monthly price rose 3.6 percent over the month to $ 256.59 per tonne CFR Iskenderun Port. Turkish imports of HMS 1 and 2 are up $ 13 /t in the first week of the month, remaining in the $ 256-262 /t range thereafter amid a relatively calm market.

In the scrap metal market, a significant decline in prices over a short period of time is often accompanied by a sharp rise, since the demand and supply threshold is violated as a result of rapid dynamics. This is exactly what happened with Turkish scrap imports in March, when the monthly average daily price index of HMS 1 and 2 rose by $ 8.94 per tonne compared to the previous month, when prices fell sharply in the range of 20 percent.

Scrap market participants reported that the impact of a drop in prices of $ 80 per tonne since the beginning of the year has finally manifested itself in a supply shortage. The cargo situation is much more difficult now, as scrap dealers are well aware that the market has now returned to previous levels and they can act to justify the increase in prices.

However, many buyers believe this recovery in scrap prices is short-lived in a long-term downward trend. They believe that there is little room for maneuver in the pricing of rebar, for which the scrap is used. Given that steel demand and iron ore prices are declining.

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