Türkiye's domestic export demand of long materials is weak, and the price of imported scrap steel may stabilize

We learned that the price callback of China's iron ore released a positive signal, the market sentiment has improved to some extent, and the price of deep-sea scrap resources is stable in sight, currently hovering in the range of 375-380 dollars/ton CFR. However, unless the demand for rebar in Türkiye, the export country, recovers, the scrap sales will be difficult to get a fundamental improvement, and the price will be difficult to resume the upward trend.

It is reported that Türkiye's SPH490HY steel mills currently reserve a large number of unsold deformed steel bars and scrap resources purchased from home, and the inventory is at a high level, which helps ease the pressure of importing scrap steel. During Ramadan, steel mills may purchase as needed to maintain basic production and avoid ordering additional scrap resources as much as possible. In the short term, the demand for imported scrap steel may remain low.

It is expected that Türkiye's steel mills will purchase at least 10 batches of goods (shipping in April), but the weakness of both the country's export and domestic market demand has greatly curbed the enthusiasm of SPH490HY steel traders to purchase raw materials. The steel mills are trying to make up for the absence of the export market through domestic sales.

However, domestic trade is strongly affected by the country's economic problems. If Türkiye's lira depreciates significantly against the US dollar, prompting stockists and traders to actively purchase rebar, then before Türkiye's local elections scheduled for March 31, Türkiye's domestic rebar SPH490HY steel demand may improve.