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

Imported scrap prices in Turkey surged after a recent deal was concluded for ferrous scrap from the EU and USA. Considering the positive market sentiments in domestic and overseas markets, mills are ready to accept higher imported scrap offers as there are limited suppliers in the market.

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices are at $505/t CFR Turkey, up by around $15-20/t w-o-w. Notably, the prices have hit three-month highs after Nov'21.

Recent deals

• In a recent deal reported, a US-origin cargo comprising HMS 1/2 (80:20) was booked at $507/t CFR Turkey and bonus material was booked at $527/t CFR. The cargo was booked by a mill based in the Black Sea region.
  
  
• A US-origin bulk cargo has been booked by a Western Marmara-based steel mill, comprising HMS 1&2 (80:20), at $502/t CFR and shredded/bonus material at $522/t CFR levels.
  
  
• A Benelux-origin cargo was booked by the same West-Marmara mill, comprising HMS 1&2 (80:20), at $493.50/t CFR Turkey.
  
  

Market overview

• Lira remains range-bound: The national currency remained side-lined around the familiar 13.53 levels for yet another week, extending the muted price action seen in mid-January.
  
  
• Domestic scrap prices on rise: Domestic scrap prices in Turkey have increased under the influence of the uptrend in the domestic finished and semi-finished prices. Meanwhile, market participants believe that domestic scrap prices are likely to rise further due to the approaching uptrend in the imported market.
  
  
• Domestic rebar prices up further: The largest steel producer in Turkey, ICDAS, announced a new and higher price for rebar at the beginning of the week, amid costlier raw materials and higher production expenses. The company raised its domestic rebar prices by $10/t to $730/t exw-Biga and $741/t CFR Marmara from the previous announcement. The general offer range for rebar in Turkey is currently at $725-740/t exw, depending on the region.
  
  
• Steel sector still under pressure despite ease in energy crisis: The energy challenges are calming down gradually in Turkey with the normalisation of natural gas flow from abroad. The energy issue remained crucial for large industrial customers that had to deal with increased energy tariffs that could hardly be eased in the foreseeable future. The import dependency on gas, and increased global pricing were a challenge.
  
  

Outlook: Imported scrap trade is likely to remain active for March shipments, owing to increased demand from both domestic and overseas markets.