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Turkish imported ferrous scrap prices dip $4/t w-o-w; sellers grapple with reduced collection charges

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Melting Scrap

BigMint Bureau

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15 Feb 2024, 20:03 IST

Turkish imported ferrous scrap prices dip $4/t w-o-w; sellers grapple with reduced collection charges

Turkish imported ferrous scrap prices remained slightly downward, falling $4/t w-o-w, with market activity conducted at a slower pace. The slow market was attributed to sluggish domestic rebar sales and a still weakening lira, which fell to 30.76 against the US dollar recently. This depreciation led sellers to withdraw from the market due to the challenges of reduced HMS collection costs.

Additionally, confusion prevailed among rebar stockists and traders due to a recent government notification regulating provisions related to VAT refunds. This uncertainty impacted transactions in both domestic and export markets.

Despite sluggish demand, Turkish mills maintained rebar offers, with Turkish exported rebar assessed at $610/tonne (t) FOB as per the last market survey. Workable levels were mostly reported at $610-612/t FOB, with an offer range of $610-$620/t FOB.

Tradable values for US/Baltic-origin HMS (80:20) continued to range between $414-$420/t CFR, mainly hovering around $417/t CFR.

BigMint's assessment for US-origin bulk HMS (80:20) witnessed a slight decrease of $4/t w-o-w, settling at $416/t CFR Turkiye based on recent transactions. The scrap-to-rebar spread was evaluated at $192-195/t, considering that Turkish exported rebar was assessed at $610-615/t FOB Iskenderun.

According to a trade source, "The future price trend is uncertain as both parties hold divergent price expectations and are reluctant to compromise."

Furthermore, bid and offer prices for HMS (80:20, US origin) on CFR Iskenderun basis were reported at $405/t and $419/t, respectively, by a couple of market participants.

Recent deals:

US-origin HMS (80:20) bulk cargo was booked by a Mediterranean region-based mill at $415/t on CFR basis.

Another France-origin bulk scrap cargo was booked by the same Mediterranean region-based mill at $412/t on CFR Turkiye basis.

The Netherlands-origin HMS (80:20) was sold to a Mediterranean mill at $418/t CFR Turkiye.

US-origin HMS (80:20) was purchased by a West Marmara mill at $419.5/t CFR Turkiye.

Europe-origin HMS (80:20) was bought by an Aegean mill at $419/t CFR Turkiye.

Russia-origin PNS was sold to a West Black Sea mill at $432/t CFR Turkiye.

Domestic rebar market: Kardemir, a Turkish steel producer, raised rebar prices to TRY 19,500/t ($635)/t, reflecting currency fluctuations and marking a $4/t increase compared to previous prices.

Billet market: Despite minimal buyer interest, both local and foreign billet suppliers have maintained their offers to Turkish customers unchanged over the past week. Weak trading activity in the billet segment is attributed to the almost absent demand for finished products. Market insiders note that prices for domestic semis closely align with rebar offers, with no room for reducing billet prices due to high production costs.

Outlook: According to market participants, imported ferrous scrap prices are expected to experience a slight decline on the mill side due to uncertainties in the domestic rebar and billet markets, compounded by the recent currency fluctuations.