Imported scrap trade in Turkey gained momentum this week. Buyers were seen actively restocking inventories from the US, the EU, and Benelux origin cargoes. The cargoes have been booked for Jan’22 shipments.
However, SteelMint’s assessment for US-origin HMS 1 & 2 (80:20) fell by $7/tonne (t) w-o-w to $492/t CFR Turkey.
Recent confirmed deals
Market update –
- Lira hits record-low against the dollar: The Turkish lira plunged against the dollar. The lira hit a record low of 12.13 against the US dollar, vis-a-vis 10.7 assessed a week back. The currency depreciated after the President Erdogan pushed for lower interest rates to boost growth, create jobs and revive his popularity ahead of general elections in 2023, but the price shocks are having the opposite effect.
- Domestic rebar prices skyrocket as currency depreciate: Domestic rebar prices skyrocketed this week as the national currency, lira, continued to depreciate. The largest Turkish long steel producer ICDAS announced a further hike in its domestic rebar prices. The new levels are at TRY 11,060/t exw-Biga and TRY 11,170/t CFR Marmara, which is up by TRY 2,070/t since last Thursday.
- Domestic scrap prices rise: The volatility in the national currency and its constant devaluation have kept domestic scrap prices higher. Turkish mills raised scrap purchase prices further.
Outlook
Turkish scrap buyers are likely to remain active in booking scrap for Jan’22 shipments but target further lower offers by $5-10/t. However, a sharp correction seems less likely amid approaching winters.
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