Turkiye: Imported scrap prices remain stable w-o-w

Imported ferrous scrap prices in Turkiye remained stable w-o-w as both buyers and sellers were trying to evaluate the market, putting transactions at a standstill for the last couple of days. Only sporadic overseas offers were heard but there were no confirmations yet from the steel mills.

Most buyers had secured healthy cargoes last month, and are now focused on finished steel bookings as longs demand from overseas markets seems to be limited at present.

On the other hand, most of the US or UK/EU-based exporters restrained their offers amid slow scrap collection. Some of them believe that prices in new deals may either remain stable or change marginally.

Meanwhile, imported scrap prices from the US remained stable in recent transactions. SteelMint's weekly assessment for HMS 1&2 (80:20) from the US stood at $415-420/t CFR Turkey, unchanged w-o-w.

Recent deals

• A Europe-origin scrap supplier booked a bulk cargo, comprising shredded and HMS (80:20), at $434/t and $414/t CFR respectively. The cargo was booked by a west Black Sea region-based steel mill and the shipment is scheduled for February 2023.
  
  
• Another cargo containing 35,000 t of bulk HMS and bonus material is heard to have been sold at $414/t and $434/t to an Aegean region-based steel mill.
  
  

Domestic market scenario

• Mills revise local scrap prices: The upward trend continues in the Turkish domestic scrap market. With firm imported scrap prices, steel producers decided to revise their domestically sourced scrap prices. Some mills followed suit, raising the price of domestic scrap by TRY 200-500/t, depending on material grade and location.
  
  
• Billets market on the rise: Turkish billets suppliers reconsidered offers to local customers, supported by higher finished steel prices and more expensive imported scrap. The new prices have already been seen in a handful of transactions.
  
  
• Rebar prices strengthen: Rebar producers started the new week with a price increase amid a positive mood in the local market and the firm imported scrap prices. The price ideas of Turkish rebar producers moved to $700-710/t FoB at the start of the week.
  
  

Outlook: Imported scrap trade may improve in the near term as prices remain supportive in the domestic market along with gradually evolving fundamental sentiments.