Turkish buyers continued to book bulk scrap cargoes from different origins for late Nov-early Dec’20 shipments. Meanwhile, Turkish buyers and steelmakers consider that it’s better to replenish their scrap inventory before the winter holidays. Also, anticipation of price hike in near term has resulted in active booking by mills this week.
Imported scrap prices have inched up over a week’s time due to tight scrap availability on low scrap collection rate in major scrap supplier countries amid pandemic lockdown in the last couple of months. SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $293/t CFR Turkey, up by $5 w-o-w.
Turkish domestic rebar offers up – Domestic prices have also increased due to rapid depreciation in the currency exchange rate. Domestic rebar (20-100 mm) price of Kardemir is currently at $570/t exw (excluding VAT).
Lira depreciates against $: Turkish Lira hit a record low and trading at 8.27 against $1 due to geopolitical friction between USA and EU. A week back it was trading at 7.92.
Turkey’s trade minister calls on global cooperation: In a Global Forum of Steel Excess Capacity (GFSEC) Ministerial Meeting held on Monday, the Turkish trade minister requested countries to cooperate to eliminate the problems in the steel sector caused by precautions and preventive policies. Due to the COVID-19 pandemic, various steelmaking companies in Turkey have stopped or reduced their production since Apr’20. The information at the plant level shows that 14 out of 36 companies stopped production, reduced the number of shifts, or reduced production, as per GFSEC report.
Outlook– Imported scrap prices may increase by $5 by the next week on increased inquiries for imported scrap.
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