Turkey: Imported scrap prices rise in recent deals, further uptick expected

With the recently concluded bulk cargo bookings, imported scrap prices to Turkey have gone up slightly by $7 w-o-w. However, limited trades were reported in the last few days at increased offers. Buyers and steelmakers expect prices to go up further before Eid holidays as US suppliers are even targeting at $440/t CFR levels to Turkey. Meanwhile, increasing demand for billet and rebar would likely keep the market active at increased offers.

Recent trades:

• SteelMint has reported the latest trade in which US-based scrap yard has sold a bulk cargo to a Mediterranean region-based steel mill. The cargo comprised entirely of HMS 1&2 (80:20) at $432/t CFR Turkey basis.
  
  
• In another deal heard, Black sea region-based steelmaker has booked bulk scrap cargo from Baltic region-based scrap suppliers. The cargo comprised entirely of HMS 1&2 (80:20) at $432/t CFR Turkey basis.
  
  

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $432/t CFR Turkey, up by $7/t w-o-w.

Market sentiments:

• Turkish Lira rebounds w-o-w: Turkish national currency Lira has rebounded and is currently traded at TRY 1= $8.17 levels. However, the Lira has depreciated earlier in the week at $8.3 levels. Despite fresh strength, overall lira's picture remains negative due to the latest political tensions with the USA's tight monetary policy, as per media reports.
  
  
• Turkish steel suppliers welcome China's removal of steel export VAT rebate: Turkish steel suppliers and steelmakers are thankful for China's new policy that the Ministry of Finance announced recently to remove export rebate for 146 steel products from 1st of May. The new policy would partially alleviate the tightness of steel supply in China by discouraging steel exports and therefore rein in demand for iron ore potentially, market sources commented.
  
  
• Spot iron ore prices remain under pressure: Spot iron ore prices decreased as China's steel export policy dampened the demand outlook. Spot price for Fe 62% fines fell by $3.4/t yesterday to $190.45/t CFR China.
  
  

Outlook: Market sources expect that Turkish buyers need more bulk cargoes for June shipments, however, the market would remain quiet during Eid holidays.