Turkiye: Imported scrap trade improves, offers up by over $25/t w-o-w

Turkiye, the most prominent scrap buyer globally, resumed its procurement of the same from last week. The steelmakers and traders have resumed procurement in anticipation of a price hike after the winter holidays. However, imported scrap prices climbed as Turkish buyers returned to the market.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $365-370/t CFR, up by $27/t w-o-w.

Steelmakers are trying to secure the maximum number of cargoes at low offers before the winter holidays set in. However, the suppliers resisted lowering their offers, due to material shortages.

Turkiye's ferrous scrap imports were recorded at 1.44 mnt in October 2022, up by 4% m-o-m from 1.38 mnt in September, as per SteelMint data. The US continued to be the largest supplier at 278,623 t, followed by Belgium and Romania at 186,588 t and 104,405, respectively. A total volume of 18.06 mnt has been imported by the nation in January-October, 2022.

Recent deals

Domestic market up

• Lira maintains stability: The Turkish national currency, Lira, has maintained stability in the exchange market for the last two months. It is currently at 18.6 against the dollar.
  
  
• Upward trend in local scrap prices: Steelmakers continued to increase their domestic scrap purchase prices amid an upward trend in imported prices. Some steel producers have decided to push their scrap purchase prices up, considering the pressure from a sharp hike in the imported prices.
  
  
• Billet prices rise: Higher imported scrap prices in recent deals, along with slightly better trading activity, were observed in finished steel products. Billets from the Iskenderun region are currently available at $580-590/t exw versus $550-565/t exw a week ago.
  
  
• Rebar prices up, demand reappears: The Turkish rebar prices have also climbed up, following imported scrap prices. Turkiye's longs producer, ICDAS, has pushed its offers further up by $30/t from last week. Thus, the company has quoted rebar prices at $670/t exw-Biga and $681/t CFR Marmara. Trade activity has resumed a bit as markets expect rebar prices to rise even further.
  
  

Outlook: The approaching winter holidays are expected to further boost the imported scrap trade. The market has improved on the back of increased finished and semi-finished steel demand.