Turkey: Imported Scrap Prices Soften Marginally On Weak Demand

SteelMint learned from industry participants that imported scrap prices in Turkey have observed softening on weakened demand in the market amid currency volatility in the past weeks’ time. Buying has slowed down after steel mills booked several cargoes towards the closing of last week. Participants may wait for more clarity on the price trend after US president Trump’s Golan height announcement.

On 22nd of Mar’19, Turkish currency Lira had depreciated suddenly by 5-6% to as high as 5.83 levels against USD and it was hovering around 5.45 levels a week ago. However, Turkish Lira (TRY) has gained back to 5.32 levels today against USD.

In a recent deal, Marmara region based steel mill booked a mixed Benelux origin cargo at an average price of USD 320/MT, CFR.

There was a market rumour of a spot shipment sold by a Russian supplier at marginally corrected prices but no confirmation was available until the publication of this report. According to it, the spot shipment cargo was offered comprising of HMS 1&2 (80:20) at USD 317.5/MT, Shredded at USD 322.5/MT and Bonus at USD 327.5/MT, CFR Turkey.

According to SteelMint’s assessment, US origin HMS 1&2 (80:20) scrap stands at around USD 323-324/MT, CFR Turkey, marginally down against last weeks’ report of USD 325-326/MT, CFR. While assessment of Europe origin stands at around USD 317-318/MT, CFR. A premium of US material over Northern European scrap stands at around USD 5-6/MT.

Sources reported that buying interest among steel mills stands at slightly lower levels than prevailing offers in the market. However, suppliers remain less aggressive at the moment on the tight supply situation.

Turkey’s rebar market sentiments continued to remain bearish on weak demand. Rebar export offers as reported last were in the range USD 490-500/MT, FoB Turkey. Moreover, CIS rebar export offers heard slightly moved up in the range of USD 480-500/MT, FoB Black Sea port depending on destination. CIS steel mills are observing decent domestic demand for rebar than that of in the export market this week.