Turkey: Imported scrap prices stable as market awaits fresh round of deals

Turkey, a major importer of scrap, is witnessing mixed sentiments as markets went up at the beginning of the week. Business activities have slowed down now and market participants are waiting for clear directions in the next round of deals.

Suppliers keep quoting higher offers, while the majority of the steel mills have taken a step back amid lower finished steel demand in exports and domestic sectors. Nevertheless, there is still room for April shipments as mills have low inventories.

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices is at $655/tonne (t) CFR Turkey, down by $10/t w-o-w.

Recent deals

• A Denmark-origin cargo of HMS (80:20) was booked at $655/t while shredded scrap was booked at $680/t CFR by an Aegean steel mill.
  
  
• West Marmara-based mill booked UK-origin cargo of HMS (80:20) at $651/t CFR and shredded and PNS at $681/t CFR.
  
  
• UK-origin cargo comprising HMS (80:20) was booked at $646/t CFR while shredded was traded at $676/t CFR.
  
  
• An Europe-origin cargo comprising HMS (80:20) was booked at $658/t while shredded material and bonus scrap was booked at $683/t CFR Turkey.
  
  

SteelMint noted that most of the deals were concluded from UK/Europe origin although US and Baltic regions remained muted. Some source added that US, Baltic-origin HMS 1&2 (80:20) at $670-680/t CFR might be possible to trade.

Turkey's domestic market scenario-

• Lira remain largely stable against dollar: The Turkish lira remained mostly same against the dollar after decreasing last week. Currently, the lira is being traded at 14.84.
  
  
• Turkish long product export prices firm: Turkish export rebar prices stayed firm owing to new sales to foreign customers. Offers for export rebars are now standing at $940-970/t FOB for April-May shipments, broadly unchanged since last week.
  
  
• Domestic billet prices down amid less demand: The Turkish billets market is slowing down due to lower demand in the local market. Current offers for billets were at $900-915/t exw against $930-950/t exw a week ago.
  
  

Outlook:

Market participants expects the next deals to be booked at higher levels from EU, if the US remains absent from the market.