Turkey’s imported scrap market continued to witness wide ranging deals this week. Buyers actively booked multiple deep sea scrap cargoes in the last few days. However, the price outlook remains uncertain due to disparities in prices.
Interestingly, imported scrap prices have come down by around $8/tonne (t) in last one month and continued to hover at $435-445/t levels throughout the month. On the other hand, suppliers were aggressive in concluding deals at the earliest possible prices.
SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $435/t CFR Turkey, down by $5/t w-o-w.
However, in the latest deals heard from Baltic origin, HMS (80:20) was booked at $435/t CFR and bonus at $450/t CFR Turkey.
Recent deals
Turkey’s market highlights
Turkish lira hits record low: The Turkish lira weakened further this week, hitting a record low against the US dollar. The national currency continued to decline after the central bank announced unexpected interest rate cut last week. Currently, the Turkish lira is being traded at TRY 8.9 against 8.75 recorded last week as compared to the dollar.
Domestic scrap prices up on depreciating currency: Turkish steel mills remained under pressure to increase domestic scrap purchase prices, owing to the weakening of the Turkish lira value against the US dollar. Mills have increased purchase prices for local scrap by TRY 50-285/t, trying to restock maximum levels before a further hike.
Turkey’s domestic long steel market has remained subdued this week with limited deals in billets being reported in the domestic market. However, suppliers seem to be resisting price cuts.
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