Turkish imported scrap prices remained largely inactive as no deals were reported this week. The discrepancy in bids and offers slowed down the market. Many market players believe that there is less chance for a further price correction as yards are holding back offers.
The bid prices are set at comparatively lower levels, owing to lower finished steel export prices. Whereas the domestic demand is high in major supplying countries like the US and Baltic region. Hence, recyclers would likely resist reducing the offers below $450/t levels.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) remained unchanged at $445-450/t CFR Turkey on a weekly basis.
Market highlights
Turkish lira appreciates: The Turkish lira (TRY) appreciated for the third successive week as compared to the dollar. Currently, the national currency remained a better performing one in the market and is being traded at 8.3 as compared to 8.39 last week against the dollar.
Rebar export prices range-bound: The recent offers for rebar exports are heard at around $685/t FoB basis, stable w-o-w.
On the other hand, domestic rebar demand remained weak and players expect price declines. Turkey’s integrated mill, Kardemir, opened sales of 5.5 mm SAE 1008-1010 wire rods, priced at $760/t (TRY 7,515/t) EXW in the local market, on 26 Aug’21.
Turkey-based mills will have to be back in the scrap market. However, they are looking for lower offers. On the other hand, suppliers are holding back lower offers considering high collection rates and freight rates.
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