Turkish imported scrap prices inch up, sellers deny further discounts

The Turkish imported scrap market is picking up as steel mills have booked two bulk scrap cargoes from Europe and Baltic region in the middle of the week. Negotiations were almost absent in the market earlier in the week. However, prices inched up as sellers were not ready to trade at further discounts.

Market participants expect a further hike in energy prices from the levels reported at the beginning of the month. Nevertheless, steelmakers have continued to focus on the finished steel market, where limited demand was observed.

SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $350-355/t CFR, up by around $5/t w-o-w.

Fresh trades

• The Europe-origin shipment, comprising 18,000 t of HMS (80:20), was booked at $344/t, and 10,000 t of bonus, and 12,000 t of shredded at $364/t each, CFR Turkey. The cargo was booked by an Aegean region-based steel mill.
• A Baltic-origin cargo, comprising HMS (80:20), was booked at $350/t, CFR. It was booked by a Mediterranean region-based steel mill.

Market drivers

• Lira largely stable against dollar: The Turkish currency, Lira, remained largely stable for yet another week. The currency is now trading at 18.38.
• Domestic rebar prices up on high input costs: The country’s major steel producers have raised their native and overseas scrap offers due to low material availability, high production rate and increased demand. Offers from Turkish longs producers for domestic rebar are now ranging around $670-700/t, exw versus $670-680/t exw seen at the end of last week.

Meanwhile, Turkiye’s long steel producer ICDAS has kept its rebar prices at $690/t exw Biga and $701/t CFR Marmara.

• Billet market improves: Despite inadequate support from finished steel producers and overall pessimistic market sentiments, there was modest billet trading activity in the domestic market, whereas mills were actively trading in billets.

Outlook
As sales of finished and semi-finished steel have improved amid an increase in demand, the market may witness slightly improved scrap trade activities in the near term.