Turkey: Offers edge down as scrap import market remains quiet

Turkey’s scrap import market saw a quiet start in the beginning of May amid the Eid festival holidays in the country. However, trade activity is likely to resume next week since negotiations for fresh bookings were absent thus far during the holidays.

Market participants believe that next week buyers will be back in the market as they did not book many bulk cargoes in April. Before holidays, mills secured a few cargoes from the USA at low prices.

SteelMint’s assessment for the US origin HMS 1&2 (80:20) is now at $540-545/t CFR levels, down by further $20-25/t w-o-w.

On the other hand, absent buyers and steelmakers kept imported scrap offers under pressure, and it may lead to mills to get another discount in the round of bookings.

Market overview

• Lira falls against the dollar: The lira is being traded at 14.86 against the US dollar as compared to 14.81 a week ago, slightly falling further.
• Ferrous scrap imports rebound, m-o-m, in March: Turkey’s ferrous scrap imports rebounded in Mar’22 at 2.02 mnt vis-a-vis 1.87 mnt in Feb, as per SteelMint data. USA was the top exporter to Turkey at 0.51 mnt in Mar, followed by Belgium and Venezuela at 0.22 mnt and 0.17 mnt respectively. However, on a yearly basis, scrap imports fell by 7% as against 2.17 mnt in Mar’21. Imported scrap shipments in Turkey regained momentum and buyers were seen actively restocking inventories. Mills stepped up bookings due to increasing steel demand as construction activity picks up in winters.
• Domestic scrap price downtrend continues: Turkish steel producers have adjusted their domestic scrap offers on low imported scrap prices and weak rebar and semis segments.
• Rebar prices decline: The continued decline in imported scrap prices and the absence of domestic market support remained the reason behind the rebar price revision. The country’s rebar prices remain under pressure from sluggish buying interest of domestic and overseas buyers, as well as a downward trend in scrap and semis segments.

Outlook: Mills are likely to push the levels further down to $10-15/t after market resumes next week. While other  markets are waiting for a clear market direction.