 |
| Turkish steelmakers square billets |
Turkish steelmakers reduced import and domestic prices for square billets by $13 per tonne in October. Softening global scrap demand and subdued finished long steel sales forced Turkish mills to lower their quotes. Consequently, purchasing managers across the Mediterranean basin are adopting a cautious stance towards bulk scrap bookings.
Macroeconomic Headwinds Pressure Billet Quotations
Weak end-user construction activity across key export destinations continues to weigh heavily on Turkish billet prices. Furthermore, elevated energy costs in Turkey have compressed operating margins for electric arc furnace (EAF) operators. Meanwhile, competition from alternative semi-finished steel suppliers in the Black Sea region created additional downward pricing pressure throughout October.
Scrap Metal Input Costs Adjust to Downstream Realities
The scrap recycling ecosystem experienced immediate repercussions as Turkish mills curtailed deep-sea scrap acquisitions. As a result, global scrap exporters adjusted FOB pricing targets downward to realign with Turkish EAF profitability margins. In contrast, European scrap collectors report growing domestic inventories as export shipments to Turkey slowed significantly during the month.
ScrapInsight Commentary
* The $13/t drop in Turkish square billet prices highlights structural weakness in global rebar demand and EAF operating margins. Moving into the next quarter, imported scrap valuations will likely remain range-bound until finished steel demand rebounds in key export destinations like Europe and the Middle East.
