Turkey: Imported scrap prices climb to over 2.5 years high in recent bookings

Turkish imported scrap price increased considerably in the recent deals concluded. The first week of Dec'20 witnessed negotiations for the imported scrap at higher levels. However, limited trades have been reported so far this week. On the other hand, suppliers are targeting further increases for Feb'21 shipments.

SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $363/t CFR Turkey, up by $10-15/t w-o-w. Prices have increased by a total of $65-70 since the beginning of Nov'20.

Recent deals-

• In a deal concluded, a Russian scrap supplier sold a bulk cargo to a Mediterranean region based steel mill. The cargo comprises, around 24,000 t of HMS 1&2 (80:20) at $358/t CFR, 6,000 t of bonus at $368/t CFR and 1,500 of rail at $373/t CFR Turkey basis
  
  
• Another deal concluded at an average price of $365/t CFR Turkey, however, the scrap composition was not clear at the time of publishing this report
  
  

Market updates -

• Domestic rebar prices have also been adjusted recently by Turkish steel mills, keeping the price level which is more workable to end-user
  
  
• Lira depreciates against $ - Turkish Lira depreciated against $ in last 2-3 days. Currently, the Turkish Lira is being traded at TRY 7.84 level against 7.76 levels on 30 Nov'20
  
  
• Auto sales up in Turkey - Sales of passenger cars and light commercial vehicles in Turkey surged 37.8% y-o-y in Nov'20 to 80,141 units, the Automotive Distributors Association highlighted.
  
  
• Global iron ore prices hit 7-years high - Iron ore spot price increased sharply and hit seven years high on strong speculative interest for Jan cargoes amid near-term supply concerns. The price for Fe 62% fines was assessed at $136.75/t CFR China. Market sources indicated continued support for iron ore prices in the near-term from both aggressive speculative buying interest as well as supported end-user demand amid attractive steel margins.