Scrap metal prices rise in Turkey despite weak rebar exports

Turkey's scrap steel imports increased during the week and are supported by higher prices. Although the export of Turkish rebar remains calm.

The offer price of Turkish rebar increased to $ 410 per tonne FOB after the increase in scrap prices in Russia. However, rebar buyers in East Africa do not expect the price to rise above $ 400 - $ 402 per tonne FOB. In such a situation, export prices for rebar in the UAE are likely to remain at around $ 400 per tonne FOB.

According to market participants, the import of scrap metal in Turkey has shown a slight increase in recent years. At the same time, the export of rebar from the country is struggling to achieve an improvement in prices, mainly against the background of an increase in the supply prices of Turkish factories.

HMS 1 & 2 80:20 scrap metal imports in the country remain in the range of $ 230 per tonne to $ 233.50 per tonne CFR. Prices for imports of steel scrap rose by almost $ 5-10 per tonne compared to the previous week. However, scrap buying activity continues to be at low levels with few orders of scrap metal during the week. Turkish factories, as previously reported, are keen to keep sufficient stocks of scrap metal.

Meanwhile, rebar exports to the Middle East are expected to be poised to regain momentum now, after the end of the Ramadan season. Rebar exports to Dubai are selling at $ 410-420 per tonne CFR, although buying has remained in the range of $ 400 per tonne to $ 405 per tonne CFR based on current scrap prices.

In addition, merchants in the Middle East region are reluctant to place new orders as they have an adequate supply of material. Rebar imports from Turkey to the region totaled 181,000 tonnes during July this year. Imports in August are estimated to be around 178,000 tons.

Meanwhile, the domestic rebar market in Turkey continued to be sluggish during the week.