Turkey: Imported scrap prices up on positive steel sentiments

Turkish buyers have resumed bulk scrap bookings for Jul’21 shipments, supported by positive steel sentiments. Meanwhile, imported scrap offers remained range-bound on active restocking. A major positive factor for the market is that global raw materials have been rising due to continuous hike in scrap demand.

SteelMint’s imported scrap price assessment for US-origin HMS 1&2 (80:20) stands at $507/tonne (t), CFR Turkey, up by $2/t against last weekend.

Recent trade

• A US-based scrap recycling yard sold a bulk scrap cargo to a Mediterranean region-based steel mill at an average price of $525/t CFR. The cargo comprised of 9,500 t of HMS 1&2 (95:5), 7,500 t of rails, and 12,000 t of P&S.
• Another deal was heard to have been concluded by an Aegean region-based steelmaker. The UK-origin cargo contained around 30,000 t of fully shredded at $521/t CFR Turkey.
• A UK-origin bulk cargo containing HMS 1&2 (80:20) as well as shredded scrap was booked by a west Marmara-based steel mill. The heavy melting scrap was sold at $504/t, while the shredded material fetched a price of $524/t, CFR Turkey.
• In another deal, a Russian bulk cargo was booked by the same west Marmara steel mill. The cargo comprised HMS 1&2 (80:20) and bonus, which was booked at $498/t and $508/t CFR Turkey respectively.

Turkish market sentiments

• Lira appreciates w-o-w: The currency trimmed its losses but is still trading at TRY 8.5 against TRY 8.63 reported a week ago. The president holds the unorthodox view that lower borrowing costs will help slow down price gains as well as stimulate the economy.He repeatedly urged the central bank to cut the benchmark rate, as per reports.
• Domestic scrap prices up on hike in finished steel: With the rising national currency, steel mills raised their scrap buying prices by around $15/t. Increasing finished steel demand gives scope to steel mils to hike their bid prices.

Outlook
Imported scrap offers are likely to go up further on rising demand. Meanwhile, most of the suppliers hold back offers, expecting a hike in the coming days.

According to the International Rebar Producers and Exporters Association (IREPAS), demand for ferrous scrap continues to increase as steel production strengthens. Supply chains remain extremely tight in many geographies as inventories are low and finished products’ demand is high. With steel mills heavily booked at high prices will also mean strong demand for raw materials through the next quarter.