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| Turkish Scrap |
Turkish steelmakers have expanded their feedstock-finished product margins over recent weeks. As a result, improved market conditions have pushed producer margins to $15-35 per ton, marking a multi-year high. Therefore, stable import scrap costs combined with firming domestic rebar demand boost mill profitability.
Balancing Domestic Construction Demand and Scrap Costs
Domestic construction sector demand has increased seasonally, pushing rebar prices above $600 per ton. Meanwhile, import scrap prices have remained relatively stable near $380 per ton cfr. Consequently, the widening scrap-to-rebar differential provides crucial financial relief for local mills.
Leveraging Competitive Asian Billet Imports
Turkish mills have also secured substantial volumes of Asian billet at competitive prices. Furthermore, heavy bookings of Chinese and Indian material priced near $495-505 per ton cfr support export margins. Ultimately, these favorable cost structures strengthen the competitive position of Turkish producers internationally.
ScrapInsight Commentary
Turkish mill profitability heavily depends on maintaining a healthy scrap-to-rebar price differential above the historical $200 per ton threshold.
Continued reliance on competitive Asian billet imports will likely sustain strong export margins through the upcoming quarter.
