Turkiye: Imported scrap prices rangebound amid slow trading

In Turkiye's import scrap market, nothing has changed in terms of prices. Due to the divergent pricing theories of scrap collectors and producers, both sides prefer to opt for a wait-and-watch approach. This is because they need time to assess the prospects for the finished steel products market for now.

In the ferrous scrap market, negotiations were almost absent. Due to the extremely low level of activity in the Turkish finished longs and semi-finished markets over the last week, the mills are being compelled to provide discounts in order to secure orders.

Additionally, the scrap suppliers would like to maintain the pricing stable since the scrap collection gets lower during the winter season, SteelMint notes. US recyclers would seek offers over $390-400/t CFR for US-origin HMS 1&2 (80:20). However, mills resist to bids at $390/t CFR and above.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $385-390/t CFR, and remained unchanged w-o-w.

Recent Deals

A West black sea region mill booked a UK-origin bulk scrap cargo comprising 35,000 t HMS (80:20) at $384/t CFR Turkiye on 9 Dec'22, booked for December shipments.

Domestic Market highlights

• Lira maintains stability: The Turkish national currency, Lira, continued stability for yet another week in the exchange market. It is currently at 18.65 against the US dollar.
  
  
• Billet prices move up: The Turkish billet market has been impacted by the ongoing uptrend in ferrous scrap, which has led to optimistic tendencies in the finished long steel market.
  
  
• Automobile market sales up : Stronger domestic and international demand aided in accelerating the growth of the Turkish automotive market. In November, local auto giants produced 133,466 units, up by 15.8% y-o-y, according to the Turkish Automotive Manufacturers' Association (OSD). Stronger domestic and overseas demand supported the pace of developments in the Turkish auto segment. Local sales totalled 86,481 units (up by 34.9%), while overseas sales recorded to 96,870 units (up by 27.4%).
  
  
• Rebar prices edge down: Domestic rebar offers from Turkish mills decreased daily by $10-15/t to $660-675/t EXW, The downward movements are related to the worse business activity seen in the sector this week compared to the previous one. However, trading activities remain far from the desired level in the local market.
  
  

In the meantime, Turkish longs producer ICDAS has maintained its rebar offers at $690/t EXW Biga since the start of the week. Other finished long steel producers began to cut their buy rates for regional scrap, which can potentially have a negative impact on the mood of the market as a whole.