Turkey: Imported Scrap Prices Move Down in Recent Deals

Turkey scrap importers are witnessing a sharp fall in imported scrap prices amid uncertainty in currency and continued dull finish steel demand in the country.

Turkish currency Lira has witnessed successive depreciations against USD since past few weeks. Yesterday Lira hit the all-time low at 5.27 panicking all the steelmakers in the country.

Sharp fall in Turkish demand dragged suppliers under pressure to offer scrap at corrected prices and four fresh trade deals confirmed at the beginning of the week. Over a weak appetite for ongoing August, the month in which activity usually slows down in Turkey, few European suppliers started offering scrap at further corrected prices for September shipments.

According to SteelMint’s assessment, the recent deals heard have pulled the price assessment for USA origin HMS (80:20) scrap at around USD 327-328/MT, CFR Turkey, which has come down by USD 3-4/MT on W-o-W. While UK origin HMS 1&2 (80:20) scrap sold at USD 324/MT, CFR levels. Premium of USA HMS 1&2 (80:20) over European origin stands at USD 5-6/MT.

Trade wise -:

1. A steel mill in Marmara region booked a US cargo, comprising 35,000 MT of HMS 1&2 (80:20) at USD 328/MT, CFR Turkey.

2. A steelmaker in Izmir region booked two 30,000 MT bulk cargoes, one of European origin comprising 25,000 MT HMS 1&2 (80:20) at USD 322/MT and remaining 5,000 MT of Bonus at USD 333/MT, CFR

3. Another of Holland origin cargo comprising 20,000 MT HMS 1&2 (80:20) at USD 322/MT and remaining 10,000 MT Bonus at USD 332/MT, CFR Turkey.

4. One UK origin cargo sold to another steelmaker in Izmir region comprising 30,000 MT HMS 1&2 (80:20) at USD 324/MT and 10,000 MT of Shredded at USD 334/MT, CFR Turkey

USD/TRY rate stands at 5.25 today depreciating another 4-5% in a weeks’ time which was trading at around 5.02 then. Imports turned costly on weak TRY and participants remained apprehensive about less stability of the currency.

Buying imported scrap at depreciated prices against USD and selling finish products in the local market in TRY is narrowing their profit margins tremendously, reason being which importers have been turning very firm not to buy scrap at higher prices in the global markets.

Rebar export prices assessed in the range of USD 535-540/MT, FoB Turkey and domestic rebar assessed at 545-555/MT, ex-works. Similarly wire rod export offers out of Turkey stand at USD 575-580/MT, FoB stable on W-o-W with no recovery in demand for finish steel in Turkey.