Imported scrap prices in Turkey have moved down in a single deal concluded from Europe yesterday, however, the market awaits for upcoming trades to get clear price direction.
Since last two weeks, steel mills in Turkey have remained less active for scrap imports on continuously weakening currency (Lira against USD) and sluggish demand for finish steel in both domestic and export markets.
As per updates received, yesterday a single deal was concluded in the market. A steel mill in the Iskenderun region booked the European cargo, comprising 25,000 MT HMS 1&2 (75:25) and 10,000 MT bonus at an average price of USD 341/MT, CFR.
According to SteelMint’s methodology, this deal has concluded at plunged prices by around USD 6.5/MT on W-o-W basis resulting in the price assessment for European origin HMS 1&2 (80:20) to drop at around USD 340/MT, CFR Turkey.
Price assessment for USA origin HMS (80:20) scrap stood at USD 348-349/MT, CFR Turkey as against the last report of USD 354-355/MT last week.
“It’s difficult to judge the whole market on the basis of single cargo sold from Europe. Unless few more deals are done in the market at declined price levels, we would not know if the prices have really slumped or not. Weakening domestic and export markets for rebar and falling currency could be the major reasons behind this price fall” Shared a Source.
In the beginning of the week, UK based supplier sold a cargo comprising 44,000 MT HMS 1&2 (80:20) at USD 345/MT and 22,000 MT Bonus at USD 366/MT, CFR Turkey but after this deal market had remained mostly silent for imported and kept preferring domestic auto bundle scrap. Presently, the market awaits for few more deals for imported scrap in order to confirm the clear price direction.
Turkish Lira drops 11.5% in a month’s time against USD – Today USD/TRY rate stood at 4.47 which was trading at around 4.25 a week ago. Moreover, Turkish lira remained depreciating continuously against USD amid inflation is running higher than expected. Turkish Lira (TRY) depreciated by almost 11.5% against USD in a months’ time which was trading at around 4.01 one month ago. Currency depreciation shall make scrap imports costlier but it seems weak demand in rebar market has pulled down scrap prices.
Domestic rebar sales remained sluggish on currency devaluation – Major steel mills in Turkey witnessed sharply falling demand for rebar in domestic and export markets since the last couple of weeks. Rebar export prices assessed in the range of USD 545-555/MT, FoB Turkey compared to USD 555-560/MT, FoB last week. While domestic rebar prices fell by USD 5/MT W-o-W and remained at around USD 550-565/MT, (ex-works).
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