Turkey: Imported scrap prices edge up in recent deal

Turkey's imported scrap offers inched up this week, while prices are hovering at a three-month high. Some market players believe scrap buyers would resist this further hike as suppliers are targeting to sell material at $515-520/t CFR levels for the time being.

Prices rose slightly because suppliers increased there offers for cargo shipments for the remaining period of March, while buyers refrained from placing new orders actively.

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices is at $505-510/t CFR Turkey, inching up by $3-5/t w-o-w.

Recent deals

• In a recent round of deals, a US-origin cargo, comprising of HMS 1/2 (80:20), was booked at $507/t CFR and shredded material was traded at a price of $527/t CFR Turkey. The cargo was booked by a steel mill based in the Mediterranean region.
  
  
• A UK-origin cargo, comprising of 25,000 t of HMS 1/2 (80:20) and 5,000 t of bonus material, was traded at an average price of $506/t CFR Turkey basis last weekend.
  
  
• In another deal heard, a Baltic-origin cargo, comprising HMS 1/2 (80:20), was booked at $504/t and bonus scrap was traded at $524/t CFR Turkey.
  
  

Market overview

• • Domestic scrap prices follow global trend: A recent hike in concluded deals for imported ferrous scrap in Turkey led to a rise in domestic material. Several Turkish steel mills pushed up the domestic prices for scrap amid strong imported offers as well as bullish local finished and semis markets.
    
    
  • Domestic rebar prices continue rally: There is a dynamic upward price trend in the Turkish domestic rebar market amid a non-stop surge in imported scrap. Local mills are required to revise prices to adjust them to the current market scenario. The largest Turkish longs producer ICDAS has decided to increase its domestic rebar offers further by $10/t w-o-w to $740/t exw Biga and $751/t CFR Marmara, towards last weekend. Few mills have opted to wait and watch the situation.
    
    
  • Domestic billet prices up: Billet offers continued to follow an upward trend againt the backdrop of bullish market sentiments. Billets were available to local customers at $695?710/t exw for February-March deliveries.
    
    
  • Koc Metalurji stops production on planned maintenance: Turkey's EAF-based billet and rebar producer Koc Metalurji started planned maintenance at its steelmaking operations. The company started a tentative planned maintenance and renovation over 10 Feb-10 Mar'22, though some sources believe the work stoppage could last slightly longer.