Turkey: Imported scrap prices remain stable in recent deals

The imported scrap trade in Turkey resumed gradually this week, with a few deals being concluded from the US. Mills returned to the market with some fresh transactions after remaining silent last week. The current uncertainty in the market slowed down scrap trade activities, as demand for finished products is not that good in both domestic and overseas markets.

On the other hand, suppliers, in turn, kept their offers high and are trying to avoid discounts. Mills, meanwhile, postponed scrap bookings, trying to get discounts.

SteelMint's price assessment of US-origin HMS 1&2 (80:20) is at $653/tonne (t) CFR Turkey, unchanged w-o-w. After prices of imported scrap reached their peak in March, activity declined and offers have remained stagnant for the last couple of weeks.

Recent deals

• A cargo of US-origin has been booked, consisting of 20,000 t of HMS (80:20), at $653/t and 10,000 t of shredded material at $678/t CFR basis. The cargo is due for May shipment.
  
  
• Before this, another bulk cargo was sold from US suppliers to West Marmara-based steel mills, comprising HMS 1&2 (80:20) at $653/t CFR, shredded at $683/t CFR, and bonus at $683/t CFR levels.
  
  

Turkey market overview

• Ferrous scrap imports drop 24% m-o-m in Feb'22: Turkey's ferrous scrap imports fell by 24% to 1.87 mnt in February 2022 vis-a-vis 2.46 mnt in January, as per SteelMint data. Bearish market sentiments and currency fluctuations resulted in the drop in scrap imports. On a yearly basis, scrap imports decreased by 7% compared to 2 mnt in February, 2021. The month saw an incredible hike in imported scrap prices amidst raw material and billet shortages, caused by the Russian invasion of Ukraine.
  
  
• Domestic rebar prices up: Turkish steel producers have decided to raise rebar prices amid higher production costs. The country's long steel producer ICDAS has announced higher prices for domestic rebar. The company has set rebar prices at $965/t exw-Biga and $976/t CFR Marmara. The main reason behind the price hike is high energy prices, but demand remained insufficient.
  
  
• Lira largely stable against $ w-o-w: The Turkish lira is performing well in the currency exchange market as no significant change was observed for the last couple of weeks. Currently, the lira is being traded at 14.73 against the US dollar.
  
  

Outlook: Turkey's imported scrap buyers are cautious as the domestic market is unsupported. The mills are focusing more on finished steel sales.