Turkey: Imported scrap prices drop to over three-month lows

Turkey’s import scrap prices continued to move down after Baltic and US-origin cargoes were booked recently, touching three-month lows. The negotiations have resumed after the recent deal, with a few more deals heard. Imported scrap prices remained under pressure due to weak finished steel and semi-finished demand. A few mills continued to postpone fresh bookings, trying to obtain discounts.

The market remained silent at the beginning of the week. Mills keep insisting on lower levels amid a sharp downtrend in the finished steel sector. However, the silence in the county’s market was broken with a deal from the UK done at a significantly lower price.

• An Aegean region-based steel mill bought UK-origin 20,000 t of HMS 1&2 (80:20) bulk cargo at $480/t CFR.
• Another Aegean-based company bought a US-origin mixed cargo, comprising 15,000 t of HMS 1&2 (80:20) at $495/t CFR and 15,000 t of shredded and bonus material at $510/t CFR.

SteelMint’s assessment for the US-origin HMS 1&2 (80:20) is now at $490/t CFR levels, down by further $50-55/t w-o-w. Prices are at their lowest since 3 February, 2022.

Market overview

• Lira depreciates again: The Turkish lira depreciated again to its five-month low. The currency fell to 15.30 against 14.86 recorded a week ago. The currency remained under heavy pressure following prospects of a longer-than-anticipated military conflict in Ukraine and its potential impact on energy prices.
• Domestic scrap prices follow global decline: Following the global drop in imported scrap prices, the country’s domestic scrap prices moved downwards due to negative sentiment in the finished steel sector. Insiders believe that this trend will continue for a further period. Steel mills announced a TRY 150‑350/t decrease in their purchase prices for local scrap.
• Domestic billet trade slows down: Trade activities for billets were on hold last week amid religious holidays in the country. The sentiment remained negative.

• Rebar prices tumble in weak market: Rebar producers started a new week with sharp price cuts amid sluggish buying interest from both local and overseas customers as well as a weak imported scrap market. The country’s steel prominent producer, ICDAS, announced a $40/t price drop since the last weekend and offers are now set at $870/t exw-Biga and $881/t CFR Marmara. Market participants believe the decline was expected in such weak market condtitions. Mills hope that a lower price could spurt buying interest.

Outlook: Market sources believe that not all scrap suppliers are ready to give such discounts as the freight rates from the US to Turkey are high now. Prices are under pressure after the UK deal. Hence, the market is waiting for the next booking slots to get clearer price directions.