Turkey: Imported scrap market sluggish, domestic prices increase

Turkey's imported scrap market remained silent throughout the week. Negotiations for the April shipment bookings have slowed down as both buyers and suppliers are waiting for a clear market direction.

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices is at $505-510/t CFR Turkey, unchanged w-o-w.

SteelMint reported the last deal for Turkey on 17 February, in which, a US-origin cargo, consisting of HMS 1/2 (80:20) was booked at $507/t CFR and shredded material was traded at $527/t CFR Turkey. The cargo was booked by a steel mill based in the Mediterranean region.

Market players anticipate imported scrap prices will increase as mills need a few more cargoes for the first April shipments. Meanwhile, a few others believe that Turkey has booked sufficient cargoes for March delivery and hence, now slowed down procurement.

Market overview

• TRY falls to multi-week lows: The Turkish lira depreciated further to a new 6-week low from 13 to 14.2. Ukraine crisis has added to Turkey's economic woes which has, in turn, resulted in currency depreciation which had remained stable since Jan'22.
  
  
• Mills lift domestic scrap prices: Major domestic mills have further lifted ferrous scrap offers due to firm prices of the imported material and higher prices for finished and semi-finished products. Meanwhile, producers have kept their buying prices unchanged but the currency fluctuation is likely to push their bid prices up.
  
  
• ICDAS keeps rebar offers stable on weak lira: Major mill ICDAS kept its rebar prices unchanged w-o-w at $740/t exw and $751/t CFR after revising it last week. Despite strong scrap prices, domestic rebar prices are under pressure due to subdued activity. Yet, steelmakers kept their export and domestic offers up amid strong imported scrap offers.
  
  
• Local billets prices inch up: Domestic billets market was quiet this week. Offers were heard to be fluctuating between $700-710/t exw which were at $695-710/t exw last week.
  
  

Outlook: Suppliers do not foresee any sharp correction in offers in the near term. However, buyers may remain cautious in booking cargoes amidst escalated trade tensions.