Turkiye: Imported scrap prices edge up on active bookings

Despite extremely dull finished steel demand in Turkiye, deep-sea import scrap prices have seen an upward swing in recent deals. Active bulk cargo bookings were witnessed this week from Europe and the US, whereas prices continued to move up in the presence of Turkish buyers in the market.

On the other hand, suppliers are trying to push prices further up amid material shortage, while consumers are not in a hurry to conclude fresh bookings. Steel mills are buying only hand to mouth as of now. Industry participants believe that the uptrend in prices is temporary and may not be sustainable.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $370/t CFR, moving up sharply by $20/t w-o-w.

Recent deals

• US-origin HMS (80:20) cargo was booked by an Aegean region-based steel mill at $363/t CFR Turkiye.
  
  
• A European-origin bulk cargo of HMS (80:20) was booked by a West Marmara-based mill at $360/t CFR Turkiye.
  
  
• US-origin mixed bulk cargo, including HMS 1&2 (80:20), was booked at an average price of $354/t CFR Turkiye basis. The cargo was booked by a Black Sea region-based steel mill.
  
  
• In another deal, a US-origin scrap supplier booked HMS 1&2 (80:20) at an average price of $369/t to a Turkish steel mill.
  
  
• US scrap suppliers are heard to have sold HMS 1&2 (90:10) at an average price of $370/t to a Marmara-based steelmaker. However, the supplier has denied the deal, according to sources.
  
  
• A US-origin 50,000 t bulk cargo was booked by an East Marmara-based steelmaker. The cargo, comprising 35,000 t of HMS (95:5) and 15,000 t of shredded, was booked at an average price of $385/t CFR Turkiye. However, the deal remained unconfirmed till the publication of this assessment.
  
  

Negative market sentiments

• Lira hits record high: The national currency, Lira, hit a new record high in a fresh acceleration. It is currently trading at 18.5 against the dollar.
  
  
• Rebar market bullish: Turkiye's steelmakers have decided to push higher their rebar prices to overseas markets, while domestic quotes remain firm. Buying activity remains largely thin not supporting upward momentum. The mills kept their selling price firm for a while in the domestic market.
  
  

Outlook: Imported scrap prices are likely to move up further on active participation by Turkish mills. However, market participants believe that this is a temporary hike as buyers are active only for the time being.