Turkey: Imported scrap price near two-year high in recent deals

Turkish import scrap prices have escalated further in recent deals concluded. The current prices are highest since Feb'19 when the prices were in the range of $328-333/t level, as per data maintained with SteelMint. SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $330/t CFR Turkey, increasing significantly by around $25 w-o-w.

Market insiders have accepted the price hike as active bookings have been observed in the last couple of days on improved finished steel demand in the domestic and global market. While many global scrap suppliers are even heard quoting above $335-340/t CFR levels for the Jan'21 shipments.

Recent Turkish Deals-

Source: SteelMint

• Lira recovers against $ - The Turkish Lira, witnessing a recovery as strengthened further this week. Currently, the Lira trading at TRY 7.57 against $1, in contrast with TRY 7.7 a week ago. The recovery looks sustainable and is likely to keep the dollar on the defensive.
  
  
• Recovering Turkish domestic demand - Turkish motor vehicle sales has increased by 93% y-o-y to 97,108 units in Oct'20, according to Automotive Distributors' Association (ODD) report. Backed by recovering sentiments in steel market, Turkish ferrous scrap imports, recorded a 13% hike m-o-m to 2.14 mn t in Sep'20 as against 1.89 mn t in Aug'20, as per data maintained with SteelMint. USA, one of the leading ferrous scrap suppliers, exported 0.49 mn t in Sep'20, up by 32% as against 0.37 mn t in Aug'20.
  
  
• Turkish domestic rebar & billet prices move up -Turkish domestic rebar and billet prices have increased as Turkish steel mill has declared the new price range for rebar for local buyers.
  
  

Outlook- Considering the active participation in the market from buyers and suppliers, SteelMint expects that the imported scrap price may increase further in the coming days as scrap generation remains lower side ahead of winter holidays.