ANKARA: Turkish HMS 1/2 80:20 scrap import weekly average prices (CFR Iskenderun Port, Turkey) stayed flat week-on-week at $291 a ton during the week ended January 06, as per the latest figures from the Steel Index. Market sources report that Turkish mills are being forced to the sidelines as a rapidly strengthening US market, and a weakening Lira, is squeezing mills margins.
Steel rebar FOB Turkey is currently priced at $427.50 a ton, squeezing the rebar/scrap spread to $136.50 a ton, its narrowest since March 2016. Market players are expecting to see a flurry of buying activity as the mills will begin to run low on scrap, but sourcing material could present a challenge, with rumors that low European water levels are keeping material away from the docks. The US market has seen significant upswings, with the domestic market pricing $10-20 a ton over current Turkish prices. If European and Baltic supply is tight, then mills may have to accept the higher pricing from the US export market, squeezing margins further.
