Turkiye: Imported scrap trade improves, prices fall

Imported scrap trade to Turkiye has improved slightly, with multiple transactions recorded. Interestingly, prices fell by around $10-15/t from last week, in the absence of active buying inquiries.

Scrap collection is comparatively better in the overseas market amid clearer weather from the previous winter. A collection rate is getting better so does the export offers along with better supply in the domestic market resulting in lower bids on a healthy supply chain.

The factor that could be attributed towards the minor correction in scrap prices was the limited movement of the finished steel market and selling pressure from steel producers.

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $405-410/t CFR Turkiye, down by $10-15/t w-o-w.

Recent deals

Domestic market-

• Local scrap prices start moving down: At the beginning of the new working week, Turkiye's local scrap prices slowed down on better supplies along with low finished steel demand and bearish sentiment in the imported scrap sector. Steelmakers have announced lower scrap bids against the previous revision.
  
  
• Sentiments mixed in the finished steel market: Bearish sentiment appeared in the finished long steel market. Domestic demand is not as expected, and exports remained almost negligible which may get slight contraction up to a certain level.
  
  
• Automotive industry recovers in 2022: While the year 2021 ended on a negative note for Turkish automakers, it regained its position in 2022, owing to positive dynamics in both domestic and overseas trades. Local car giants produced 1.35 million units in 2022, indicating a 6% annual increase in volumes, according to the Turkish Automotive Manufacturers' Association (OSD). As a result, the capacity utilisation rate of the automotive industry was 70% last year. Despite the slowdown in the economy and changes in demand, especially in Europe, Turkiye recorded an increase in its automotive exports.