Turkey: Imported scrap prices at 3-month high in recent deals

Turkey's imported scrap prices are witnessing a significant rise after two months. In fact, they have hit a three-month high. Buyers have actively procured fresh deep-sea scrap cargoes in the last few days. With the improving demand, import prices have increased due to limited stocks. Furthermore, the Turkish domestic market is also skyrocketing - mills' are receiving improved demand for billets and long steel products.

A market insider said: "Suppliers are still holding back and waiting for prices to go up to $490-500/t CFR levels."

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $480/t CFR Turkey, up by $30/t w-o-w.

However, a latest deal was heard of Baltic-origin scrap cargo of HMS 1&2 (80:20) being booked by a steel mill based in the Aegean region at $480/t CFR Turkey.

Recent deals

Turkey's market highlights

• Turkey's lira lowest ever: The weakening of the national currency over the past year has broken all records this week. Presently, the Turkish lira is being traded at TRY 9 against 8.88 recorded last week as compared to the dollar. The lira imbalance makes export activities more attractive at the moment.
  
  
• Domestic billet prices surge: Due to continuous hike in imported scrap prices, local producers are aggressive on their long product offers. ICDAS increased its rebar offers by $15/t over a day, to $715/t exw-levels.
  
  
• Billet import prices shoot up: Finished steel products are becoming more expensive day by day as scrap prices are rising worldwide. Recent imported billet prices are at $675-680/t CFR Turkey. However, the lira weakening is a negative factor for the local market, and producers might switch to exports, as mills did not restock last week.
  
  

Outlook
Due to electricity issues, less container availability, and improving demand from end-users it is expected that prices might rise in the coming weeks.