Turkey: Imported scrap prices up in recent bookings, domestic prices follow suit

Imported scrap prices in Turkey have increased by $15/t w-o-w in a deal concluded recently, credible sources have confirmed to SteelMint. Most of the buyers have completed their bookings for the April shipments, while offers have increased for May shipments cargoes. Sharp fluctuation in Lira continues to affect the domestic market.

• An Aegean region-based steel mill has booked USA bulk scrap cargo. The cargo comprised of HMS (80:20) at $430/t, shredded at $435/t, and PNS at $440/t CFR Turkey basis for May shipment.
• Prior to this, another confirmed deal concluded in which a US based scrap dealer has sold bulk scrap cargo to a Mediterranean region-based steel mill. The cargo comprised of HMS 1&2 (80:20) at $427/t, shredded at $432/t CFR and bonus at $437/t CFR Turkey basis.

SteelMint’s assessment for US-origin HMS 1&2 (80:20) now stands at $430/t CFR Turkey, up by $15/t w-o-w.

Market sentiments:

• Lira continues to depreciate: Lira continued to depreciate in its seventh day of decline which is expected to raise inflation levels. Currently, the national currency is trading at 1 TRY = $8.18 levels, as compared to 7.9 levels recorded a week ago. Governor Sahap Kavcioglu said on Monday that current elevated levels of inflation require tight monetary policy, pledging to keep the bank’s key interest rate above inflation until it was clearly on a permanent downward path, according to recent media reports.
• Domestic scrap prices up: Following the global price uptrend, domestic scrap prices too have increased in Turkey. There is less possibility of prices going up further due to slow finished steel market.
• ICDAS adjusts domestic rebar prices: A major Turkish giant has increased rebar prices on back of sharp fluctuation observed in the national currency. ICDAS has pulled up the prices for rebar by TRY 165/t ($20) on 31 Mar’21.

Outlook: Turkish mills have been active in concluding billet & finished long export deals. Hence SteelMint expects more imported scrap bookings on restocking needs to take place ahead of Ramadan holidays.