Scrap import prices firm but weak steel demand tempers sentiment

Turkey’s imported scrap prices inched higher this week to USD 345-355 per ton CFR, compared with USD 345-350 per ton last week, as mills booked fresh cargoes at higher levels. However, market sentiment remained cautious amid persistent weakness in finished steel demand.

Mills have reluctantly accepted the higher prices to replenish inventories, but steel consumption has yet to show meaningful recovery. Some market participants remain hopeful that demand could improve in the near term, contingent on a rebound in Chinese steel prices and a more stable geopolitical environment.

At the same time, there are risks of a downward trend, as Turkish steelmakers continue to grapple with higher production costs while finished steel prices fail to keep pace.

Despite the rise in scrap costs, Turkish long steel export offers were largely unchanged this week, with rebar at USD 550-555 per ton FOB and wire rod at USD 565-570 per ton FOB.