Turkiye: Imported scrap prices rebound after hitting over two-year low

Turkiye's imported scrap prices have rebounded this week after hitting a two-year low, as steelmakers remained active in booking scrap from Europe, US and Baltic regions. However, the country's steel mills tried to push the prices further down for US-based material, while a few scrap buyers continued to look for alternative sources.

Meanwhile, global suppliers continued to keep offers on the higher side, citing lower scrap collection rates.

SteelMint's price assessment for US-origin HMS 1&2 (80:20) is at $340/t CFR basis, registering a sharp hike of over $10/t d-o-d, while prices came down by $7/t w-o-w.

Recent deals

• An Izmir-based company booked a mixed lot, from a Belgian exporter, that comprised 20,000 t of HMS 1&2 (80:20) at $329/t CFR, 10,000 t of shredded material at $344/t CFR, and 10,000 t of bonus at $344/t CFR.
  
  
• Yesterday, a Marmara-based mill bought a mixed lot with a total volume of 25,000 t from Latvia, where HMS 1&2 (80:20) was priced at $340/t CFR and bonus material at $355/t CFR.
  
  
• Another deal was concluded, in which European bulk cargo was booked, comprising HMS 1&2 (80:20) at $329/t and shredded-bonus material at $349/t CFR levels. The cargo has been booked by Aegean region-based steel producers.
  
  
• Prior to this, a US-origin scrap supplier sold a bulk cargo to a western Maramara-based steel mill. The cargo consisted of HMS 1&2 (80:20) at $330/t CFR and shredded at $345/t CFR basis.
  
  

The trade negotiations have resumed in the ferrous scrap market as suppliers started pushing their offers up, SteelMint understands.

Market overview

• Lira gains against dollar: Turkiye's currency, lira, which has been witnessing a consistent fall in the past couple of weeks, has now gained in value and stands at 16.06 as compared to 17.35 a week ago.
  
  
• Mills cut domestic scrap prices: The weakening in domestic scrap prices continued for yet another week. Some steelmakers decided to lower their purchase prices for domestic scrap by TRY 150-350/t after another drop was witnessed towards last weekend in imported scrap offers. However, other companies keep their scrap prices unchanged for the time being. Also, weak finished and semi-finished steel markets have a negative impact on local scrap quotes.
  
  
• Billet offers continue to decline: The domestic billet market followed the negative trend after the correction in domestic and imported finished steel and scrap prices. Activities in the domestic market remained weak.
  
  
• Domestic longs prices drop further: The downtrend in domestic finished steel prices continued amid weak imported scrap offers earlier in the week. Sluggish buying interest was seen among both domestic and overseas buyers. Additionally, the rebar market remained under pressure from a sustained downtrend in imported scrap offers.
  
  

Outlook: Imported scrap offers have, however, started moving up, and steel mills have resumed placing bids for July and August deliveries.