Turkey: Imported scrap prices set to rise further on strong billets demand

Turkish deep-sea imported scrap prices rose abruptly to cross the $500/tonne (t) CFR mark. Steel mills continued to increase prices following recent changes in the Chinese tax policy and increase in long steel and billets demand.

In a recent deal, a Europe-origin bulk scrap cargo was booked by a Mediterranean region-based steel maker. The cargo comprised 6,000 t of P&S and HMS1, 10,000 t of shredded, 4,000 t of new cuttings and 20,000 t of HMS 1&2 (80:20). The average deal price of the cargo is reported at $500/t CFR Turkey.

The US suppliers are quoting high prices which the buyers are not ready to accept. Meanwhile, other regions actively booked scrap cargoes at increased price levels for June shipments. The market is increasing rapidly and it seems that prices may move up further.

As per SteelMint's assessment, the price of US-origin HMS 1&2 (80:20) stands at $505/t CFR Turkey, rising $25/t week-on-week and $5/t against the beginning of this week.

Recent trades

Market highlights:

• Turkish Lira hits six month low: Turkey's national currency continued to depreciate against the $, hitting over six-month low since Nov'20 on tighter US monetary policy. Currently, 1TRY is being traded at $8.50 levels as compared to $8.30 levels a week ago.
  
  
• Domestic prices up: Turkish domestic scrap prices increased further this week in line with rising imported scrap prices. In response to rising steel prices, several steel producers have raised their bids for the auto bundle.
  
  

Outlook: According to suppliers, Turkish imported scrap prices are set to rise further on account of tighter availability.