Final Thoughts
CRU: Turkish Scrap Import Prices Drop at the End of March
Written by Rosy Finlayson
April 4, 2023
Turkish scrap import prices fell in the last week of March as buying activity remained low and domestic supply improved, according to analysis from the CRU Group.
CRU’s assessed Turkish scrap price for HMS1/2 80:20 is $443 per metric ton CFR, down by $17 week-on-week (WoW) and $7 month-on-month (MoM).
Turkish buyers are taking a cautious approach as construction activity is slower than expected and market uncertainty has persisted due to the upcoming general election. At the same time, the domestic scrap supply has increased because of collection of material following the demolition of earthquake-affected infrastructure in southeast Turkey. Moreover, improvement in scrap supply is usual for this time of year as warmer weather conditions are more conducive for scrap collection.
In the Turkish finished steel market, the rebar export price has decreased to $720 per metric ton FOB (down by $45 MoM and $5 WoW), while the HR coil export price remains unchanged at $830 per metric ton FOB (up by $30 MoM). This is largely in response to sluggish demand amid reducing production costs, following the government announcement of 15% and 20% cuts to electricity and natural gas prices, respectively, starting April 1.
In the Asian scrap market, demand has remained lackluster with no fresh deals concluded last week. Japanese bulk scrap offers are ~$440-445 per metric ton CFR (unchanged WoW) and offers from Hong Kong for HMS1/2 50:50 are priced at ~$420 per metric ton CFR.
By Rosy Finlayson, CRU Research Analyst
This article was originally published on April 3 by CRU, SMU’s parent company.
Request more information about this topic.
Learn more about CRU’s services at www.crugroup.com
Rosy Finlayson
Read more from Rosy FinlaysonLatest in Final Thoughts
Final Thoughts
Even before the news about Mexico, I didn’t want to overstate the magnitude of the change in momentum. As far as we could tell, there hadn’t been a frenzy of new ordering following President Trump’s announcement of 50% Section 232 tariffs. But higher tariffs had unquestionably raised prices for imports, which typically provide the floor for domestic pricing. We’d heard, for example, that prices below $800 per short ton for hot-rolled (HR) coil were gone from the domestic market – even for larger buyers.
Final Thoughts
I want to draw your attention to SMU’s monthly scrap market survey. It’s a premium feature that complements our long-running steel market survey. We’ve been running our scrap survey since late January. And over just that short time, it’s become a valuable way not only for us to assess where scrap prices might go but also to quantify some of the “fuzzy” indicators - like sentiment and flows - that help to put the price in context.
Final Thoughts
I think there is an obvious case for sheet and plate prices going higher from here. That’s because, on a very basic level, the floor for flat-rolled steel prices, which is typically provided by imports, is now significantly higher than it was a week ago.
Final Thoughts
We're about to hit 50% Section 232 steel tariffs. What could happen?
Final Thoughts
With higher tariff rates on steel and aluminum set to go into effect on Wednesday, June 4, a new round of chaos across the supply chain is likely in store. Expect a significant impact on manufacturers and metal fabricators. But even before the latest round of Trump-tariff whiplash on Friday evening, there was a lot of interesting data coming out of SMU's steel-market survey.