Imported scrap prices to Turkey have dropped further by $20/t in a deal concluded recently, credible sources have reported to SteelMint. However, limited trades were reported this week. SteelMint’s assessment for USA origin HMS 1&2 (80:20) now stands at $415/t CFR Turkey, registering a significant drop of around $25/t as compared to mid of last week.
A Turkey-based steelmaker has booked around 23,000 t of UK origin bulk cargo. The cargo comprises of HMS 1&2 (80:20) at $408/t, shredded at $419/t, CFR basis. The cargo shipment would be in late February-early Mar’21.
Furthermore, few more deals have concluded at $420-425/t level for US origin cargo, however, the deals were not confirmed at the time of publishing the report.
Market highlights-
- Lira’s outperformance against $– Turkish lira has been the best performing emerging market currency so far in 2021, according to the report. The International Monetary Fund (IMF) expects Turkey’s economy to expand by around 6% in 2021 with the country’s COVID-19 vaccine rollout and recovery in trading partner growth. Current exchange rate $1=TRY 7.3
- Spot iron ore price drops sharply- Spot price for iron ore Fe 62% fines dropped by $9 d-o-d to $156/t CFR China, from around $165.5/mt yesterday.
- Automobile and light commercial vehicle market- The passenger car and light commercial vehicle market have registered a hike of 61.3% y-o-y to 772,788 units in CY’20 as compared to the previous year. Automobile sales have increased by 57.6% to 610,109 units in CY’20 compared to the previous year, while the light commercial vehicle market increased by 77.2%. It reached 162,679 units, as per data released by Automotive Distributors Association, Turkey (ODD).
Outlook– There are mixed sentiments from Turkish market participants. Few suppliers believe prices have bottomed out, whereas others consider that there is room for further decline and expect prices to drop in the next two weeks. Imported scrap market is expected to be hushed in the short period.
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