Turkey: Imported scrap prices edge close to a five-month high

Turkey ferrous scrap import prices continued to climb as further deals have been concluded for June shipments at higher levels as Turkish buyers are actively replenishing their scrap inventory before the Eid holidays, SteelMint understands.

Prices went up on supportive increased demand from local producers and semi-finished and finished steel trades. Turkey's imported scrap prices jumped by around $45/t w-o-w and around $25/t against the beginning of this week.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $475/t CFR Turkey.

Recent trades:

Another deal heard yesterday was of UK/Europe origin following which HMS price indications have moved up and reached at $470-475/t levels.

Market sentiments:

• Rising import offers push up domestic prices - Following the global trend, domestic steel and scrap prices moved up in early May. Low scrap inventories remain the major factor for rise in scrap offers. In the first week of May, domestic scrap prices in Turkey are reported to have increased by $5-28/t
  
  
• Turkish Lira increase in value against $ - National currency has continued to gain against the $ as compared to previous week. Currently, 1TRY is being traded at $8.30 levels, as compared to 8.19 level a week back.
  
  
• Domestic rebar prices up - A prominent steelmaker - Kardemir has set its rebar sales at $668/t (TRY 5,546/t) EXW. Buying activity is good at the moment. However, things are slow with the end buyers, as prices are too high for Turkey.
  
  

Outlook: Suppliers may increase prices on good buying activity in Turkey as more cargoes are likely to be booked before holidays, as per market sources.