Turkiye: Imported scrap prices inch up in fresh deals

Turkiye's imported scrap prices have risen after a fresh round of deals from the US and EU. Steel producers are slowly starting to buy imported material amid improving finished steel market sentiments.

After witnessing diverse trends in the steel market in September, production cuts were announced due to high power tariff. Despite extremely negative demand, around four-five cargoes were booked in the beginning of the month.

Owing to limited availability of scrap in yards, demand surged and sellers resisted the temptation to lower offers. However, the prospect of a further hike in scrap prices remains uncertain as mills are booking volumes on hand-to-mouth basis due to the continuous hike in energy prices.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $370-375/t CFR, up $3-4/t w-o-w.

Recent trades

• A deal from the US was placed at an average price of $393/t CFR for 17,000 t of shredded and 15,000 t of bonus material.
  
  
• Another US-origin cargo of 16,000 t HMS (90:10) was traded at $378/t, while 14,000 t of shredded was booked at $393/t by a steel mill in the Aegean region. In another deal, HMS (80:20) was booked at $367/t and shredded at $385/t CFR Turkiye.
  
  
• A Benelux-origin cargo comprising 33,000 t of HMS (80:20) and 3,500 t of shredded, PNS and HMS1 was booked at an average price of $369/t CFR Turkiye.
  
  
• An Iskenderun steelmaker booked 40,000 t of mixed material at an average price of $369/t CFR from Europe.
  
  

Positive market sentiments

• Local scrap following imported scrap: Turkiye's local scrap prices are moving upwards tracking import scrap prices. Steelmakers have increased their purchase prices for domestic scrap by TRY 200?600/t over the week.
  
  
• Local billet prices rise: Billet demand and prices in the market is reflected by the increasing domestic scrap prices. However, market participants are hesitant about further hike in prices. Most Turkish billet suppliers were offering at $610-635/t exw to domestic buyers, up from $610-620/t EXW a week ago.
  
  
• Rebar sales improve, prices stable: Turkiye's rebar producers kept prices on the higher side this week owing to higher production costs and slow improvement in sales. However, the market turned firm after major producer, ICDAS, kept rebar prices unchanged this week at $715/t exw Biga and $726/t CFR Marmara. Offers from other local producers are in the range of $700-730/t exw depending on the region.
  
  
• Lira stable against dollar: The national currency, Lira, remained largely unchanged against the dollar. It is currently trading at 18.59 against the greenback.
  
  

Outlook

Despite a few deals heard, trading activity is still slow. However, trades are expected to pick up in the coming weeks. Furthermore, short-sea scrap bookings have increased and market participants are anticipating transaction volumes to swell in the near term.