Turkiye: Imported scrap market muted on weak steel sentiments

The imported scrap market in Turkiye remained quiet as buyers were reluctant to book fresh cargoes amid unfavourable market conditions. Negotiations are still slow due to the prevailing pressure on finished steel sales. However, industry participants believe that the downward trend in scrap prices will not last long as availability of material is low due to the upcoming winter season and decline in steel production.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $360/t CFR, down by $5/t w-o-w.

One deal was heard concluded by a Turkish mill for 30,000 t HMS 1&2 (80:20) at $360/t CFR and 5,000 t of shredded at $380/t CFR from a supplier in the USA.

Market sentiments negative

• Lira stable: The national currency, Lira, remained largely unchanged against the dollar last month. It is currently trading at 18.6 compared to the previous week.
  
  
• Major mills maintain billet prices: Turkey's integrated steel mills decided to open a new round of billet sales in the local market in the last week of October. However, due to lack of support from the finished steel segment as well as a muted imported scrap market market participants are unconvinced about sales picking up pace. Other Turkish producers believe the offered level is quite low.
  
  
• Rebar prices continue to fall on slow demand: Steelmakers continue to lower their rebar offer prices on slow buying interest from domestic and overseas buyers. However, even lower quotes have failed to spur trading. Pessimistic sentiments prevail among market players. Rebar prices are at $655-680/t EXW depending on the region.
  
  

Outlook: The Imported scrap market is likely to remain dull in the near term. Additionally, an unfavourable domestic market situation is likely to keep buyers sidelined.