Turkiye's imported ferrous scrap market slows down before Presidential run-off polls

Turkiye's imported scrap market continued to remain sluggish throughout this week with only a few deals heard recently. Most Turkish producers are adopting a cautious approach, resulting in thin trading volumes ahead of the second round of presidential elections on 28 May 2023.

Negotiations for the supply of ferrous scrap have been slow as market players remain uncertain. Mills are struggling to fetch finished steel orders, which in turn has impacted demand for scrap in Turkiye.

Recent deals

• A mill based in the Aegean region has secured a cargo from the US of HMS (90:10), shredded, and bonus at $380/t, $398/t, and $398/t, respectively, on a CFR Turkiye basis.
  
  
• Another deal was concluded by a mill based in the Black Sea region for an EU-origin cargo containing HMS (80:20) at $380.5/t CFR Turkiye.
  
  
• A Northern Europe origin cargo booked by another Black Sea region-based mill comprising HMS(80:20) and Bonus at $380/t and $400.5/t respectively on a CFR basis.
  
  

SteelMint's daily assessment for HMS 1&2 (80:20) from the US stood at $378/t CFR Turkiye, up by $3/t w-o-w.

Domestic market scenario

Limited activity was seen in the Turkish domestic rebar market this week, as an Iskenderun mill adjusted its prices after selling a cargo. Export offers have been gradually declining over the past few days, but still remain significantly higher than offers from North Africa.

• Mills adjust domestic scrap prices: Turkish steelmakers have decided to revise their prices for domestic scrap. However, there is no consistent price trend. Some companies have announced an increase of TRY 50-200/t since the last revision, reflecting the further weakening of the national currency against the US dollar

  On the other hand, some companies have decreased their prices by TRY 100/t due to the challenging situation in the finished steel sector.
  
  

• Metalurji advances towards billet production: Turkish steel producer Tufan Metalurji is making progress with its steelmaking project. The company has received approval for the environmental impact assessment to proceed with the project, which will be located in Ceyhan, Adana province, in southern Turkey. Billet production from this facility is intended for both domestic and international trade.
  
  
• Construction industry: The Turkish construction industry has shown slight improvements this month. However, this trend is likely due to the traditional spike in building activity during this period, rather than a fundamentally healthier business environment.