The scrap import market remained slow this week, as wide gaps in bids and offers kept buyers away. Global scrap suppliers are trying to sell their stocks at $505-510/t, CFR levels, and market sentiments are positive. Notably, no fresh trade has been reported in the past few days.
SteelMint’s import scrap price assessment for U.S.-origin HMS 1&2 (80:20) is stable at $505/t, CFR Turkey, up by $2/t against last weekend.
Turkey, the world’s leading scrap importer, recorded a 7.8% rise in scrap consumption with volumes touching 30.77 mn t in CY’20, as per BIR estimates.
Turkish lira hits a new low: Turkey’s national currency, Lira, hit a new low against the dollar, as President Erdogan continues to push the country’s central bank towards lower interest rates that sparked fresh sales of lira, as investors fear that inflation may surpass the interest rate that would cause more problems to the economy which struggles to stay afloat during the Covid-19 crisis. The currency is now being traded at $1=TRY 8.63 vis-à-vis 8.27 level a month ago.
Turkish rebar prices fall: Due to uncertainty in the national currency finished steel observed subdued demand, resulting in a sharp fall in rebar prices. Rebar is now being offered in the range of $750-760/t, FoB, registering a fall of over $10-15/t in just one week.
Ferrous scrap imports surge 12% in Apr’21: Turkey recorded scrap imports at 2.42 mn t in Apr’21 – 12% higher against 2.17 mn t a month ago. Increasing demand from the country’s steel mills was met by the U.S, with total exports at 0.55 mn t, followed by the UK at 0.25 mn t, as per SteelMint data.
Outlook: Imported scrap prices are hovering at $500-510/t levels. The seaborne market awaits fresh Turkish scrap deals –likely to be concluded this weekend – for further price direction.
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