Turkey's imported scrap prices hit over 1-month low as Lira crashes

Global imported scrap market leader, Turkey, remained less active this week as mills held back bookings on bearish sentiments amidst a sharp depreciation in the Turkish Lira against the US dollar.

However, prices for scrap imports have softened in the deals reported yesterday, falling by around $5-10/ tonne (t) w-o-w. SteelMint's assessment for US-origin HMS 1 and 2 (80:20) fell to $485/t CFR Turkey, down by $7/t w-o-w.

Recent deals

• The US-origin cargo containing 22,500 t HMS 1 and 2 (80:20) was booked at $485/t CFR Turkey by a West Marmara-based Turkish steel mill, SteelMint learned.
  
  
• A Mediterranean region-based steel producer booked a Shortand Baltic origin bulk scrap cargo, comprising HMS 1&2 (80:20) at $480/t CFR and bonus at $500/t CFR Turkey basis.
  
  
• A US-origin cargo was sold to a Turkish steel mill, containing HMS 1 and 2 (80:20) at $492/t CFR Turkey.
  
  

Turkey market overview

• Lira crashes: Turkey's lira crashed at TRY 13.42 against the dollar after President Erdogan again recommended the interest rate cuts in key policies of the central bank.
  
  
• Domestic scrap prices continue to move north: Turkey's domestic scrap prices continued to move north. Steel mills further hiked local scrap prices for the second successive week amid the constant weakening of the national currency, Lira.
  
  
• Mills lift domestic rebar offers: Turkish domestic rebar prices remained at the higher side on currency support. Steel producers welcomed the winter season with another hike in domestic rebar prices. The country's largest long steel producer, ICDAS, raised its domestic rebar prices by TRY 1,040/t w-o-w to TRY 12,100/t exw-Biga and TRY 12,210/t CFR Marmara.
  
  
• Turkey's ferrous scrap imports rise 11% in Jan-Oct'21: Turkey's ferrous scrap imports rose by 11% to 20 million tonnes (mn t) in Jan-Oct'21 vis-a-vis 18 mn t in the same period last year, as per SteelMint data. USA was the top exporter to Turkey with 3.4 mn t in Jan-Oct'21 followed by the Netherlands and the UK with 2.50 mn t and 1.94 mn t, respectively. In Oct'21, scrap imports showed a marginal 1% m-o-m increase to 1.55 mn t as against 1.54 mn t in Sept'21.
  
  

Outlook

Dull domestic market sentiments are likely to keep steel mills under pressure. However, considering the winter season as a favourable time for bookings, suppliers may find it hard to lower offers further.