Turkey: Imported scrap prices hit nine-month lows in recent deals

The Turkish imported scrap trade gained some pace this week after a pause. Recent deals from the Baltic and US have been concluded but at lower prices. Mills succeeded in achieving heavy discounts from scrap suppliers. However, mills book material as per their requirements.

SteelMint's assessment of US-origin HMS 1&2 (80:20) stands at $440/t CFR levels, moving down significantly by $25/t w-o-w. Prices have come down to around nine-month lows since October.

• A Marmara-based steel producer bought HMS 1&2 (80:20) at $435/t CFR from Denmark scrap recyclers.
  
  
• Another major Marmara-based mill purchased mixed cargo from the US, in which HMS 1&2 (80:20) were priced at $439/t CFR, while shredded and bonus material were at $454/t CFR.
  
  
• Previously, Europe-origin HMS 1&2 (80:20) at $446/t and bonus at $471/t were booked by a Mediterranean-region-based steel mill.
  
  

At the beginning of the week, the imported scrap market was silent. Mills and scrap buyers postponed purchases amid low finished steel product sales.

Market overview

• • Lira depreciates slightly: The lira continued to fall for yet another week. It is trading at 16.49 against the dollar.
    
    
  • Domestic scrap prices up: Turkish domestic scrap prices started moving upwards amid the continuous fluctuation in the national currency. The majority of steelmakers have increased their purchase prices for local scrap. Currently, mills are trying to keep their prices unchanged as the imported scrap market sentiments are mixed and activity in the finished steel market remains subdued.
    
    
  • Lower domestic rebar prices boost business activity: Domestic rebar prices are on a downward track amid softened scrap prices and insufficient buying interest. Turkey's prominent rebar producer, ICDAS, kept its prices unchanged for yet another week at $780/t exw-Biga and $791/t CFR Marmara. Offers from other domestic mills have been reduced by $10/t w-o-w and are now set at $740-760/t exw depending on the region.
    
    
  • Government declares surge in energy tariffs: The start of summer was accompanied by a sharp rise in energy tariffs. Economic factors and the global hike in energy costs are among the reasons behind it. The Turkish Energy Market Regulatory Authority increased prices by 15?25%, depending on the customer category. Power tariffs for high-demand commercial users zoomed up to TRY 2.9 or about $0.18/kWh.