Turkey: Imported scrap prices up $15/t w-o-w in recent bookings

Imported scrap prices moved up significantly for the first time in the last five-six weeks. Turkish buyers are actively booking scrap of US and Baltic origin for Oct-Nov'21 shipments.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $450/tonne (t) CFR Turkey, up by $10-15/t w-o-w.

Recent deals

Turkish market highlights

• Lira weakens: Turkey's national currency, lira, remained weak for yet another week as the Central Bank of the Republic of Turkey (CBRT) continued to cut interest rates. Currently, the lira is being traded at TRY 8.88 to the dollar.
  
  
• Domestic rebar prices up: As mills are stocking up scrap inventory, they have pushed their rebar sales in recent transactions. Turkey's biggest steelmaker ICDAS has increased its domestic rebar offers in line with the general market uptrend supported by rising scrap prices as well as sufficient domestic demand. Currently, rebar is being traded at $670-690/t exw-levels.
  
  
• Turkey's automotive sales fall: Turkish domestic sales of passenger cars and light commercial vehicles dropped in September as supply chain disruptions weighed, leaving dealers with no cars in stock. The automobile and the light commercial vehicle sales decreased by 39.1% and 28.9% m-o-m respectively.
  The combined sales of the same, on a y-o-y basis, fell by 36.9% y-o-y to 57,141 units in Sept'21 as compared to Sept'20.
  
  
• Ferrous scrap imports down 17% m-o-m: Turkey, the world's largest ferrous scrap importer, saw a 17% decline in volumes to 1.96 million tonnes mn t in Aug'21 in contrast to 2.35 mn t in Jul'21, as per data compiled by SteelMint. The US was the top exporter to Turkey at 0.28 mn t in the month followed by Russia and the UK at 0.24 mn t and 0.19 mn t, respectively.
  However, on a y-o-y basis, imports rose marginally by 4% from 1.89 mn t in Aug'20.
  
  

Outlook
Global scrap prices are less likely to correct downwards from the current levels considering the hike in offers from the suppliers.