Turkiye: Imported scrap prices continue to dip amid Eid holidays

The Turkish imported scrap market is still stagnant, with few deals reported at lower prices. A few small-parcel transactions continued to take place. Steel mills are away from the scrap market which has resulted in short-term stockpiling of supply at various suppliers and therefore plenty of cargo available.

The imported scrap market remains sluggish since price expectations diverge. Meanwhile, South Asian steel makers may return to the market following the Eid holidays, which may keep active suppliers. The short-term sentiment is pessimistic ahead of Eid, and the election.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $420-425/t CFR Turkiye, down by $5-8/t w-o-w.

Recent deals-

• A US-origin deal was heard booked on 17-18 April by an Aegean region-based mill: HMS (80:20) at $417/t CFR Turkiye.
  
  
• Another US-origin deal was heard on 14 April by another Aegean region-based mill, with HMS (80:20) at $426/t CFR Turkiye.
  
  
• An older deal was heard for Venezuela-origin material totaling 23,000 t booked on 14 April by another mill based in the Aegean region, with HMS (80:20) fetching $426.50/t CFR for May shipment.
  
  
• A Europe-origin cargo comprising HMS (80:20) and bonus, was booked on 14 April by a West Marmara-based steel mill at $431/t and $451/t CFR, respectively, for May delivery.
  
  

Both suppliers and buyers prefer to wait-and-see because pricing remains the primary concern. Turkish steel mills quoted bids at $415/t CFR for US and Baltic HMS 1&2 (80:20). Steelmakers are uninterested in short-sea scrap cargoes for the time being.

Other Updates

• Local scrap declines gradually: Domestic scrap prices in Turkiye remain low, owing to the continued negative sentiments in the finished steel market. After the previous adjustment, some steel companies have declared a drop in their purchasing costs for local scrap. The downward correction is mostly due to a lack of trading activity in the domestic and export rebar markets.
  
  
• Rebar prices continue to decrease: Domestic rebar offers from Turkish steelmakers have dropped $5-10/t since the end of last week, and now range between $685 and $695/t exw depending on area. Simultaneously, proposals from long steel producer, ICDAS, have remained unchanged at $700/t exw Biga and $715/t CFR Marmara.
  
  
• March auto output up: The Turkish auto industry is continuing to follow a strong trend that was established at the start of the year. March saw a one-third increase in output data, improving year-to-date performance even higher. Given the conditions, the sector's prognosis was revised upward. According to the Turkish Automobile Manufacturers' Association (OSD), local automakers manufactured 142,799 units in March, a 34% increase over the same time in 2022.
  
  
• Lira depreciation: The Turkish lira continues to decline in the currency exchange market. Currently, the lira is being traded at 19.4 against the USD compared to 19.2 a month ago.