Turkey: Imported scrap prices inch down post-active bookings

The imported scrap trade in Turkey has remained active since the last few days with numerous deals getting concluded. Steel mills are actively restocking fresh cargoes for Dec'21 shipments and buyers do not seem to be in a hurry to make further fresh bookings.

Instead, deep-sea cargo suppliers are continuing to fulfil domestic requirements at higher offers.

SteelMint's assessment for US-origin HMS 1&2 (80:20) currently stands a little lower at $503/t CFR Turkey. However, prices had inched up to $505/t CFR towards last weekend.

Recent deals

• In a recent deal, a USA-based scrap supplier has sold bulk scrap cargo to West Marmara-based steel mills. The cargo comprised of 20,000 t of HMS 1&2 (90:10) and 10,000 t of shredded at an average price of $513/t CFR Turkey.
  
  
• Another USA-origin cargo was sold to a Mediterranean-based steel producer. The cargo, comprising of 25,000 t of HMS 1&2 (80:20), was booked at $505/t CFR, for Nov'21 shipment.
  
  
• Furthermore, another Mediterranean region-based steelmaker booked 27,000 t of bulk cargo from USA at $505/t CFR Turkey, towards last weekend.
  
  
• A Baltic-origin scrap cargo containing 32,000 t of HMS 1&2 (80:20) was booked at $502/t CFR and 3,000 t of bonus scrap, at $522/t CFR Turkey. The cargo was booked by a steel mill based in the Mediterranean region, as per sources.
  
  

Turkish market overview

• Lira sets record low: The lira is now the worst performer in the currency exchange market. It is now being traded at TRY9.57, depreciating further w-o-w against the dollar. The national currency has fallen from TRY8.8 at the beginning of Oct'21.
  
  
• Domestic prices continue to trend up: The unstable exchange rate keeps forcing domestic scrap buyers to raise their scrap purchase prices. Few Turkish mills have accelerated their local scrap purchase prices by TRY 120-150/t ($13-16/t).
  
  
• Domestic rebar prices up further: Turkey-based major mills continue to raise their domestic rebar prices, owing to the continued hike in imported scrap prices. Turkey's major long steel producer, Icdas, set its rebar prices at TRY 8,640/t exw-Biga (up by TRY 520/t w-o-w) and TRY 8,750/t CFR Marmara (up by TRY520/t w-o-w). Demand remained strong in domestic and overseas markets.
  
  

Outlook
Turkish scrap buyers are likely to remain active in the imported market inthe near term to restock on increasing demand, despite high offers.