Turkey: Imported scrap trade gains momentum on active deals

Turkish steel mills, after extending their silence till last week, resumed active bookings in the last couple of days. Four seaborne scrap bookings were heard to have been concluded by Turkey-based mills recently.

Deals heard

• In a recent deal, UK-origin bulk cargo comprising HMS 1&2 (80:20) was booked at $458/t CFR Turkey, shredded scrap at $475/t CFR Turkey, and bonus material at a price of $482/t CFR Turkey.
  
  
• Another deal was concluded in which a US-origin bulk cargo, comprising 15,000 t of shredded and 15,000 t of bonus material was booked at an average price of $478/t CFR Turkey. The cargo was booked by a mill based in the Mediterranean region. The shipment was finalised for the first half of Feb'22.
  
  
• A UK-based scrap dealer sold bulk cargo to a Mediterranean-based steel mill. The cargo comprised of HMS 1&2 (80:20) at $456/t CFR, shredded at $471/t CFR and bonus at $476/t CFR levels.
  
  
• Another Mediterranean-based steelmaker booked US bulk scrap cargo, comprising of HMS 1&2 (85:15), at $472/t CFR Turkey basis.
  
  

SteelMint's assessment of US-origin HMS 1 & 2 (80:20) prices are at $460-463/t CFR Turkey, stable w-o-w.

"Currently, not many offers are available for HMS 1&2 (80:20) from the suppliers' end. They are offering for Feb-end shipment," said a Turkish steel producer.

Market highlights

• Ferrous scrap imports climb to a 4-month high in Nov'21: Turkey recorded imports of the material at 2.04 million tonnes (mn t) in Nov'21, an increase of 32% against 1.55 mn t in Oct'21, as per SteelMint data. Import volumes have climbed to an almost four-month high against 2.34 mn t seen in Jul '21.
  
  
• Lira tumbles against dollar: Turkey's lira tumbled again amid soaring inflation and instability in the country's economic policies. The lira was trading at 13.64 to the dollar, a rising start to the new year after having lost about 45% of its value against the beginning of 2021, which was its worst year in two decades, as per reports.
  
  
• Local mills adjust scrap prices: Turkish steel producers have revised their domestic scrap purchase prices this week. The prices have increased sharply on silence in the import segment that started to appear at the year-end.
  
  
• Billet prices firm: The unstable economic situation, along with the holidays, have slowed down Turkey's billets market, both local and overseas. Current local billet prices in Turkey are holding ground at $640-650/t exw.
  
  
• Surge in energy tariff may cause trouble: The start of the new year saw a sharp increase in energy tariffs in Turkey- with a rise in electricity prices for economic reasons. New electricity tariffs in Turkey rose as much as 125% by up to TRY 2.06 per unit for high-demand commercial users and by 50% for households that consume up to TRY 1.37/unit. The main reason is rising costs, as the inflation rate in the country has risen.