Turkey: Ferrous scrap importers waiting for further price drop

Turkey's imported scrap prices dropped in deals concluded towards the beginning of this week. However, the market players subsequently became quiet and are looking for a potential price change at present. They have opted to wait, expecting offers to come down in the coming days.

SteelMint's imported scrap price assessment for US-origin HMS 1&2 (80:20) stands at $500/tonne (t), CFR Turkey, down by $7/t against last week.

Recent deals

• A US-based scrap recycling yard has sold a bulk cargo to a West Marmara-based steel mill. The cargo comprised of HMS 1&2 (80:20) at $500/t and shredded and bonus at $520/t CFR Turkey basis.
  
  
• In another deal, another US-based scrap dealer sold to the same West Marmara-based steel mill, and the cargo comprised of HMS 1&2 (80:20) at $501/t and shredded and bonus at $520/t CFR Turkey basis.
  
  

Market highlights

• Lira still volatile: Volatility in the national currency, lira, continues. It has depreciated further. Currently, it is being traded at TRY 8.64 levels against TRY 8.5 recorded a week ago.
  
  
• Scrap imports from US rise: Turkey, the world's leading buyer of seaborne ferrous scrap, recorded 2.42 million tonnes (mn t) of scrap imports in Apr'21, 12% higher against 2.17 mn t a month ago, as per SteelMint data. Increasing demand from Turkey's manufacturing sector kept the imports on an upswing. The US became the largest exporter of ferrous scrap to Turkey at 0.55 mn t in Apr'21. Turkey's scrap imports from the US hit a nine-month high in Apr'21.
  
  
• Automotive sales skyrocket in Apr'21: Sales of passenger cars and light commercial vehicles in Turkey jumped 132% y-o-y in Apr'21. Around 61,488 units were sold through the month, as per the Automotive Distributors Association (ODD), just before the country entered the nationwide Covid-19 lockdown state, which is expected to impact May auto sales.
  
  

Outlook
Suppliers feel Turkish buyers need to book more cargoes for July shipments, as offers for deep-sea loadings remain favourable.
Meanwhile, other scrap buying countries wait for fresh deals from Turkey to provide further price directions.