Turkiye: Imported scrap offers rise, trade remains slow

The Turkish imported scrap market witnessed mixed sentiments this week amid diverging offers and bids. Suppliers were bullish on the market and kept their offers high. Some deals were being negotiated and may result in their closures soon.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $460/t CFR Turkiye, slightly down w-o-w.

Fresh deals

There is a buzz in the market that a US-origin supplier sold bulk cargo to Mediterranean-based steel producers, at $480/t CFR. However, the deal remained unconfirmed till the time of publishing this report.

The moods are mostly positive as rebars stay in demand in the domestic market and mills need raw materials for finished steel products. Sensing increasing demand from end-users, steel producers also increased their bid levels.

Domestic market overview

• Billets market silent: Trading activity continued to be rather modest in the billets market. Billets suppliers were offering at $690-700/t exw versus $710-720/t exw last week.
  
  
• Rebar prices up on increased demand: Rebar prices remained high on increased demand in the domestic market post-earthquake. Kardemir's integrated mill sold sufficient quantities of finished products at higher prices. Domestic rebar offers from other local steelmakers ranged between $760?770/t exw depending on the region versus $755?770/t exw seen last week.
  
  
• Automakers' output rises in Feb: The Turkish automotive segment improved in February, gaining support from higher domestic interest in cars. As it is one of the main steel-consuming segments, higher domestic demand has injected some optimism among steelmakers. Turkiye's auto output hit 111,959 units in February, up 6% y-o-y, according to the Turkish Automotive Manufacturers' Association (OSD).
  
  

Further, passenger cars accounted for the largest portion, at 58,907 units sold last month (up by 56.5%). Turkiye manufactured 223,796 vehicles, indicating an increase of 14.1% y-o-y.