[SMM Steel]

The EU is expected to publish its updated list in October, with the two Alang yards potentially becoming the first Indian facilities to receive EU approval. European recycling interests have urged the European Commission to remove India’s YSI Recyclers and Shree Ram from the proposed update of the EU-approved ship recycling facilities list, mainly citing concerns over the beaching method used at Alang and the control of oil and other pollutants. No facility from India, Bangladesh or Pakistan has so far been included on the EU list. Meanwhile, eight major shipping associations, including BIMCO, Intertanko, Intercargo and the International Chamber of Shipping have supported the inclusion of the two yards, saying inspection reports showed they meet EU requirements and highlighting improvements made by Indian yards in recent years.

[Turkey] Driven by recent regional supply tightness following the disruption of Russian flows and residual support from the earlier domestic rebar rally, Turkish domestic steel billet prices advanced by another 10 USD/tonne to 570 USD/tonne EXW. In the Karabük region, small- and medium-sized buyers reliant on imported volumes and local integrated producers are awaiting a major mill to resume taking orders, with significantly higher offer levels widely anticipated. However, as procurement by buyers has largely been completed and finished steel gains have begun to taper off, upward momentum for domestic billet is showing clear signs of fatigue. In contrast, the import market has ground to a complete standstill. Turkish billet import prices held flat at 515 USD/tonne CFR, with no substantive deals concluded during the week. Chinese billet offers held firm at 460–465 USD/tonne FOB; however, with late-October rolling slots closed due to production and logistical slowdowns ahead of the Golden Week holidays, overseas buyers showed little appetite to chase higher prices for November shipments. An Indonesian mill also trimmed its November offer slightly to 478 USD/tonne FOB. Meanwhile, market expectations regarding the return of Russian supply are heating up. Although transit and logistics costs to Turkey remain considerably higher than the traditional Black Sea route, Russian mills may be forced to accept squeezed margins to defend export volumes. Caught between the potential return of Russian materials and cooling domestic demand expectations, Turkish buyers have broadly adopted a wait-and-see stance.

[Steel Mill Maintenance] Xingtai Steel shut down a 1,050m³ blast furnace on September 23, with an estimated daily hot metal impact of about 3,000 mt. The shutdown is expected to last until April 2027. [SMM Steel]