Turkey: Imported scrap prices soften in recent deals

Turkey’s imported scrap prices have softened in recently booked deep-sea cargoes from the USA. The prices have come down by $5 after short term hike was observed last month. Turkish buyers were quiet for the last few days which created pressure on suppliers to reduce their offers for further March shipment. SteelMint’s assessment for US-origin HMS 1&2 (80:20) now stands at $456/t CFR Turkey, down by $5 w-o-w.

Additionally, a continuous hike in freight rates left market insiders confused and few buyers postponed their bookings. Limited buyers are active in the market due to increasing overseas semi-finished and finished steel demand.

Confirmed trades-

• In a recent deal, an Agean region-based steel mill has booked bulk cargo from USA. The cargo comprised 18,000 t of shredded and 12,000 t of bonus (P&S) at an average price of $467/t CFR basis.
• In another deal, the same Agean based buyer has booked another USA origin bulk cargo from different scrap. The cargo comprised 12,000 t of shredded at $466/t, 12,000 t of HMS 1&2 (80:20) at $456/t and bonus (P&S) at $466/t CFR Turkey basis.
• In another deal concluded by USA scrap dealer, a Mediterranean region-based steel mill has booked HMS 1&2 (80:20) at $453/t, shredded at $458/t, and bonus at $463/t CFR basis.

Lira depreciates over a month: Towards the end of Feb’21 Turkish Lira started depreciating and currently is trading at 1 TRY=$7.46 which was recorded around 7.0 a month ago.

Q2 outlook much better than the previous year – IREPAS: In its recent release, International Rebar Producers & Exporters Association (IREPAS) forecasts that the steel outlook for the next quarter is much better compared to last year, and is very good for most of the market. The market can generally be described as all set to prosper, with the exception of the import market in the US which still is unstable. European construction activities almost proceeded at 100% levels amid the mild winter conditions. The market has the potential to be very strong in the second quarter. There is sufficient demand for long products worldwide despite the pandemic.

Outlook: Global suppliers likely to quote fresh offers at lower levels for remaining March shipment bookings.