Turkey: Imported scrap bids fall on weak finished steel market

Turkish imported scrap trades have slowed down during the Ramadan month. The offers are mostly firm from the beginning of the month. While suppliers are targeting prices on the higher side, importers keep postponing their bookings in the hope of lower prices even as scrapyards are loath to sell material at lower prices.

SteelMint's price assessment of US-origin HMS 1&2 (80:20) stands at $645/tonne (t) CFR Turkey, lower by $8 w-o-w.

Currently, the market is waiting for the next round of bookings in order to derive a clearer price picture, expecting price levels would be lower. On the other hand, mills have inventory and so they have halted fresh bookings for May shipment, SteelMint learnt from market sources.

Turkey's market overview

• Domestic scrap prices down: Turkish steel mills have reduced their domestic scrap prices amid bearish and weak finished steel demand. The reasons behind the price decrease are sluggish demand for finished steel products locally as well as currency fluctuations.
  
  
• Turkey's auto output falls: The country's automotive industry, one of the main steel-consuming sector, continues to suffer from the shortage of inputs, accompanied by the economic headwinds and shifts in logistic chains. March automotive output decreased by 13.7% to 106,575 units y-o-y, according to the Turkish Automotive Manufacturers' Association (OSD). The numbers were largely affected by passenger cars, which account for the biggest share of all products.
  
  
• Lira stable against USD: The national currency has witnessed stability over the last couple of weeks. Currently, the lira is being traded at 14.62 against the US dollar.