Turkey: Imported scrap trade subdued on bearish steel sentiments

Turkey's imported scrap trade softened this week after having recorded active transactions last weekend. Trade slowed down primarily due to dull demand for finished steel in the country. Meanwhile, many scrap suppliers believe that imported scrap prices may have bottomed out before the Sept bookings close and a few more bookings need to be done for Sept shipments.

Meanwhile, Turkish buyers are waiting for a further correction of $5-10/tonne (t).

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $445-450/t CFR Turkey, slightly down by $2-5/t w-o-w.

Recent deals

• A Europe-origin cargo was booked by a Mediterranean steel mill. The cargo comprised 22,500 t of HMS 1/2 (80:20) and bonus scrap of 12,500 t. Both were sold at an average price of $450/t CFR. The deal was finalised for Sept'21 shipment.
  
  
• Last weekend, a Europe-origin cargo was booked by an East Marmara-based steel mill. The cargo comprised HMS 1/2 (80:20) which was sold at $455/t CFR and shredded scrap at $471/t CFR.
  
  
• Last weekend, in another deal for US-origin bulk cargo, 30,000 t of HMS 1/2 (80:20), 7,000 t of shredded scrap, and 3,000 t of bonus material were sold at $470/t CFR each.
  
  

Turkish market highlights

• Turkish lira gains against dollar: The Turkish lira (TRY) appreciated this week too as
  compared to the dollar ($1). Currently, the national currency is being traded at 8.39 as compared to 8.53 last week against the dollar. It is estimated that the exchange rate is likely to come down below TRY 8.
  
  
• Turkey rebar offers up despite subdued sales: Turkey's largest long steel producer, ICDAS, raised offers by $5/t w-o-w to $680/t exw, despite a fall in scrap offers and subdued sales.
  
  
• Automobile, LCV sales down in Jul'21: Automobile sales decreased by 47.7% to 36,311 units as compared to the same month of the previous year. Light commercial vehicles (LCV) sales also decreased by 35.8% to 11,538 units, as per latest data released by the Automotive Distributors Association (ODD).