The Turkish imported scrap market was active throughout the week, with several bulk cargoes having been booked for Jul-Aug’21 shipments. Imported scrap offers into Turkey dropped which kept scrap buyers active in the market. They will likely continue bookings to restock before the Eid holidays.
With recent deals, imported scrap offers into Turkey dropped significantly by $10-15/tonne (t) w-o-w. SteelMint’s assessment for US-origin HMS 1&2 (80:20) now stands at $485/t CFR Turkey.
Recent deals
- A western Marmara region-based steel mill booked three bulk cargoes, two from the US and one from the Baltic region.
1.The US cargo containing HMS 1&2 (80:20) was concluded at $485/t CFR and shredded scrap at $500/t CFR.
2. Another US cargo containing HMS 1&2 (80:20) was sold at $493/t CFR and shredded scrap at $508/t CFR.
3. Prior to this, a Baltic cargo was booked, comprising 28,000 t of HMS (75:25) and 2,000 t of bonus/HMS1 material at an average of $486.50/t, for Aug’21 shipments, sources confirmed.
- A US-based recycling yard sold 40,000 t of mixed cargo to an Aegean region-based steel mill at $499/t CFR Turkey basis. The cargo comprised 20,000 t of HMS 1&2 (95:5) and 20,000 t of shredded.
Suppliers are looking to sell their cargoes actively before the prices come down further. However, buyers need around 10 more cargoes for Aug’21 shipments.
Due to negative sentiments and low demand for finished steel, rebar prices are expected to fall further by $15-20/t.
Turkish lira gain value: Turkey’s national currency has gained value this week, as the central bank kept its key rate unchanged, which barely impacted the exchange rate. Currently, the lira (TRY) is being traded at 8.56 against the dollar as compared to 8.7 recorded a week ago.
Outlook
Although, imported scrap offers into Turkey have come down, mills are likely to book more cargoes before the upcoming Eid holidays.
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