Turkey: Imported scrap market sluggish on bearish market sentiments

World largest scrap importer, Turkey, has witnessed a continuous silence in the market after seeing fewer deals at lower prices earlier this week.

Imported scrap prices remained under pressure as Baltic-origins cargo containing HMS 1&2 (80:20) was booked at lower price on $475/t CFR Turkey, in the past week for Jan’22 shipments. A European origin, HMS 1&2 was traded at $467/t CFR Turkey however, at the time of publishing the report this deal is not confirmed from the seller side.

In another deal heard 40,000 t scrap (HMS and Shredded) of Belgium origin was booked at $460-480/t CFR.

Furthermore, SteelMint’s assessment price for US-origin HMS 1 & 2 (80:20) stands at $470-475/t CFR Turkey, lower by $10-15 w-o-w.

Bearish market sentiments in the finished long steel market and currency fluctuations have continued to weigh down imported scrap prices.

Turkey market update:

• Lira tumbles against Dollar: Turkey’s lira devalued to record low in recent months and stand at TRY 13.74 against the dollar compared to TRY 13.42 a week ago. The constant decline is hampering the buying activities in Turkey.
• Domestic scrap prices rise:Turkish mills have announced an increase in it domestic scrap purchase price amid instability in country’s economic situation. Steel producers have increased their ferrous scrap prices by TRY 100-1,205/t.
• Nov’21 automotive sale shrinks: Turkey registered a 25% y-o-y drop in passenger and light commercial vehicles sales to 60,216 units, due to chip crises according to the local Automotive Distributors’ Association (ODD).

Outlook
Weakening of the lira and insufficient demand of scrap and finished steel in the market is expected to lead the Turkish buyers remain pessimistic. Approaching winter holidays and mills maintainance during January might lower the further bookings which may prevent sharp price correction.