Imported scrap trades remained absent in Turkey for last one week amidst a sharp fall in bids. Sources indicated that negotiations are going on and new deals are likely to be closed soon. Imported scrap offers have dropped around $40 since the beginning of the month. Negative sentiment continues to stop scrap buyers from booking fresh cargoes even as suppliers are pushing the sale.
SteelMint has reported the latest confirmed deal on 12th Mar’21, in which an East Marmara region-based steel mill has booked bulk cargo from USA, comprising 20,000 t of shredded at $435/t and 10,000 t of HMS 1&2 (80:20) at $430/t CFR Turkey basis.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) now stands at $418/t CFR Turkey, down by $12/t w-o-w.
Market sentiments-
- Turkish Lira plunges against $: The national currency has plunged sharply in the last two days. The national currency of Turkey crashed shortly after the management reorganised in the central bank just four months after the previous reboot in Nov’20. Currently, the Turkish Lira is being traded at TRY 1= $7.9, and the same level was recorded during Nov’20 end.
- Domestic scrap prices fall: Few large Turkey-based steelmakers have pulled down the domestic scrap prices due to the global scrap price downtrend and recent volatility in the Turkish Lira.
- ICDAS raises rebar offer: Turkey’s major steel mill – ICDAS has adjusted its rebar price in line with $ fluctuations. The company is heard to have raised offers by TRY 60/t this week, however, trades have remained limited.
Outlook: Market insiders believe that prices have bottomed out and there are less chances of sharp correction. Few more cargoes are still likely to be booked for April shipment which may give a clearer picture for outlook.
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