Imported scrap trade in Turkey regained momentum after a gap of one week. Buyers kept away from the market owing to instability of the national currency and weaker finished steel sentiments. Many buyers continued to postpone purchases on the uncertain market direction.
SteelMint’s price assessment for US-origin HMS 1 & 2 (80:20) stands at $460-465/t CFR Turkey, lower by around $5/t w-o-w.
Recent deals
Market highlights
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- Lira rebounds against dollar: Turkey’s national currency, lira, swayed wildly after a continued rally, as investors weighed the sustainability of government measures to shore up the currency. The Turkish lira tumbled against the US dollar between Sept-Dec’21, with prices hitting an all-time low at TRY 18.07, after the country’s central bank started cutting interest rates. Currently, the currency is being traded at 10.8 against the 15.03 level recorded a week ago. The currency recovered after the president announced plans to protect local deposits.
- Local scrap prices range bound: Turkish steel producers kept revising domestic scrap prices to maintain a balance with the fluctuating currency. Many Turkish steelmakers lowered their purchase prices for local scrap with strengthening of lira.
- Rebar prices soften: The country’s steel mills were under pressure to revise their domestic rebar prices amid currency volatility. The largest Turkish long steel producer ICDAS lowered its local rebar prices with strengthening of the national currency value. Current rebar prices are at TRY 10,900/t exw-Biga and TRY 11,010/t CFR Marmara.
- Energy crisis slows down production: After struggles with the currency fluctuation, the new challenge stands ahead. There are rumours that the steel producers consider suspension of production due to energy crisis and planned maintenance. Meanwhile, low demand from domestic and overseas customers has left steel mills disappointed.
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