Turkey: Imported scrap prices rebound in recent deals

Turkish deep-sea ferrous scrap import prices have risen sharply thanks to the recent deals concluded from the EU, Venezuela and Russia. Imported scrap market sentiments have improved and prices for the same are likely to go up further in the near term as suppliers are targeting above $500/t CFR Turkey, SteelMint learnt. However, demand for semi-finished from end-consumers is very less.

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices are at $485-490/t CFR Turkey, up by around $15-20/t w-o-w.

Recent deals

• Turkey's scrap import market witnessed a recent deal concluded by a mill based in the Mediterranean region. A European-origin cargo comprising 30,000 t of HMS 1/2 (80:20) was booked at $475/t and 10,000 t of shredded scrap was sold at $495/t CFR Turkey.
  
  
• A Russia-origin cargo, comprising 18,000 t of HMS 1/2 (95:5), was booked at $493/t CFR Turkey.
  
  
• A Venezuela-origin cargo was booked by a Mediterranean mill, with HMS 1/2 (80:20) fetching a price of $483/t CFR.
  
  

"The market is strong here and buyers have started booking at higher prices, for March deliveries. A few orders have already been concluded," said a Turkish scrap trader.

Turkey's scrap imports up over 20% m-o-m, in Dec'21: Turkey's ferrous scrap imports rose by 22% to 2.49 mnt in Dec'21 vis-a-vis 2.04 mnt in November, as per SteelMint data. The Netherlands was the top exporter to Turkey with 0.40 mnt in Dec, followed by USA and the UK with 0.35 mnt and 0.24 mnt, respectively. On a yearly basis, scrap imports saw a rise of 12% against 2.23 mnt in Dec'20. Turkey imported 24.36 mnt of scrap in CY '21, up 10% y-o-y.

Market overview

• Lira stable against dollar: The country's national currency's value remained firm for the third straight week against the dollar, trading at 13.5.
  
  
• Mills push up local rebar prices: Turkish domestic steel mills have decided to increase rebar prices last month-end amid higher input costs and improved market activities. Turkey's largest steel producer, ICDAS, has pushed its domestic rebar offers up after around a gap of a month, which lasted since the end of December. The new prices are set at $720/t exw Biga and $731/t CFR Marmara.
  
  
• Automotive sector receives mixed outcomes: The country's automotive sector, one of the top steel-consuming areas, failed to start the year with positive dynamics on a y-o-y basis. Sales of passenger cars decreased 7.9% to 561,853 units in CY'21 as compared to the previous year. The light commercial vehicle market has improved by 7.9% to reach 175,497 units, according to data released by the Automotive Distributors' Association (ODD).
  
  
• High energy costs may ease: With the gradual improvement in natural gas sourcing, the energy headwinds eased in Turkey. The state-owned pipeline operator, Botas, announced corrections in natural gas tariffs at the start of the month, increasing those for power generation companies by 14.1%.
  
  

Outlook

Imported scrap trade is likely to improve, as prices for the same are moving up and mills are required to replenish the inventory for March shipments.