Turkey: Imported scrap market quiet as suppliers’ close shop for winter holidays

• Buyers hope to resume after 4th Jan’21 with an offer price around $480-490/t
• SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $475/t CFR Turkey
• Turkey-UK sign historic free trade agreement

Turkey- largest ferrous scrap importer remained quiet this week after several deals were concluded in the last couple of weeks. On account of winter holidays, major supplying countries are now closed for business and they may quote fresh offers after returning from holidays. Turkish buyers are expecting the market to resume after 4th Jan’21 with an increase in offer prices.

SteelMint has reported a last confirmed deal on 24th Dec’20 of a European bulk scrap cargo that has been sold to a Western Marmara based steel mill at $480/t CFR Turkey basis.

SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $478/t CFR Turkey, up by $3 against last week.

Domestic scrap prices revise- On the strong currency exchange rate of the national currency, domestic scrap purchase prices have dropped recently by TRY 25-55/t ($4-8/mt), sources have reported to SteelMint. However, no negative trend was observed.

Turkish lira gain further against $– The Turkish lira has outperformed other emerging market currencies since last month, extending gains since the country’s central bank raised its key policy’s interest rate last week. Currently, Turkish Lira is being traded at TRY 7.42 against $1, as compared to TRY 7.86 recorded a month ago.

Turkish imported billet prices up by $20 w-o-w– Imported billet prices to Turkey have observed a sharp hike by $20 w-o-w and were traded at $600/t CFR.

Turkey-UK sign historic free trade agreement– Turkey and the UK signed a historic free trade agreement earlier this week, which would be into effect New Year’s Day, on 1st Jan’21. The new deal will be cover all industrial goods, according to the report. The UK is one of largest scrap suppliers to Turkey, as it exported 1.84 mn t of ferrous scrap to Turkey in the first 10 months of 2020, as per data maintained with SteelMint.