Turkiye: Imported scrap prices rise by $10/t w-o-w, trade improves

Turkish imported scrap buyers and steelmakers continued their trade activities throughout the week. This week saw a surge in bulk cargo bookings from the US and Europe. However, prices continued to rise.

Mills are actively sourcing raw materials, capitalising on lower energy costs and high finished steel prices to meet an increased demand from domestic and overseas end users.

Further, negotiations between suppliers and buyers are continuing, as buyers are setting their bids high. At the same time, steel producers also raised their domestic scrap purchase prices and rebars prices this week.

Recent deals

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $425/t CFR Turkiye, moving up significantly by $10/t w-o-w.

The Turkish lira maintained stability and was traded at 18.7 against the dollar from 2 January, 2023.

Turkiye's government has raised import duty on non-alloyed flat steel products towards last weekend, sources informed. Import duty on HRCs has been increased to 15% from 9% previously, on CRCs to 17% (10% previously) and on GI / PPGI to 20% (15% previously). It is likely to boost scrap consumption and domestic finished steel production.

Domestic market overview

• Domestic scrap prices move up: Domestic scrap prices started moving up, following the continued strengthening of imported scrap prices. Most Turkish steelmakers revised their purchase prices for domestic scrap upward. The imported scrap market is strong now, and the mills need to adjust their domestic scrap prices to receive the material from local suppliers, SteelMint noted.
  
  
• Billets market stays firm: Encouraged by higher scrap prices and higher quotes for finished long steel products, Turkish billets sellers are trying to benefit from the current market environment. Both domestic and overseas suppliers have raised their offer prices, but demand for semis is still far from desirable.
  
  
• Rebars strengthen as demand emerges: Turkiye's rebars prices have been strengthening in the middle of the week amid stronger demand from domestic customers. Positive moods prevailed in the sector. Rebars offers are now ranging within $720-730/t exw.
  
  
• IDC back to normal production pace: Turkish finished long steel producer Izmir Demir Celik (IDC) announced the decision to return to the normal production pace after almost five months of reduced capacity utilisation. The limitations were imposed in early September 2022. The company cited challenging market fundamentals and limited demand for steel amid the seasonal market contraction as the reason for the adjustment of its production programme to enable more efficient use of resources.
  
  

The company is on the way to increase its steelmaking capacity from 1.5 mnt to 2.8 mnt. The new facility is planned to be completed by the end of Q2 2023, as per reports.