Turkey: Imported scrap prices range-bound, deals up marginally

Turkey's imported scrap market remained less active and range-bound although there was a pick-up in deals -a few got concluded recently. The Turkish construction industry is lagging behind due to skyrocketing inflation and insufficient demand, which, in turn, is leading to lower demand for imported scrap in the country for Feb'22 deliveries.

Deals and offers

• SteelMint had reported a deal of Baltic-origin scrap cargo, comprising HMS 1&2 (80:20), being booked by a steel mill based in the West Marmara region, at $467.5/t CFR Turkey, towards the end of last week.
  
  
• In a recent deal, a Benelux-origin scrap cargo comprising 20,000 t of HMS 1&2 (80:20) and 10,000 t of shredded and bonus was booked by a steel mill based in the West Marmara region at an average price of $471/t CFR Turkey.
  
  
• SteelMint's assessment of US-origin HMS 1&2 (80:20) prices are at $470/t CFR Turkey, stable w-o-w.
  
  

Market overview

• Suspension of operations at mills on higher electricity cost: EAF steelmakers announced suspension of crude steel production for three days amid hike in electricity cost. Many factories suspended operations till Feb'22. As a consequence, buying activities in the regional market is decreasing. The heavy snowfall also caused logistical problems in the market.
  
  
• Lira stable against dollar: The country's national currency remained balanced this week against the dollar. It was trading at 13.61 against $1 as compared to 13.59 a week ago.
  
  

Turkey steel output at all-time high in CY'21, auto sales drop: Despite raw material shortage, energy crises and production restrictions in 2021, the country's annual production reached an all-time high. Turkey produced 40.4 mnt of steel in CY'21 up by 12.7% y-o-y, as per a World Steel Association report.

However, Turkish automotive production shrunk 1.7% to 1.28 mn t in CY'21 against 1.3 mnt in CY'20, according to the Turkish Automotive Manufacturers' Association (OSD). To regain momentum locally and abroad, manufacturers would increase their investments this year to raise consumption.