Turkey’s imported scrap price awaits new deals for further market direction

Imported scrap trades to Turkey witnessed a lull with no deals being reported since closing of last week. Buyers and suppliers are holding back as market awaits more clarity. Market insiders have postponed their fresh bookings for Mar’21 shipments.

SteelMint’s assessment for US origin HMS 1&2 (80:20) now stands at $400-405/t CFR Turkey, mostly stable against the closing of last week.

SteelMint has reported the recent trade towards the closing of the last week wherein a US based scrap recycler sold bulk cargo to Turkish steelmaker. The cargo comprises of HMS 1&2 (80:20) at $405/t CFR basis. Few more deals have been heard that were concluded at $400-403/t level.

Key market drivers-

• Turkish Lira climbs to six-month high– Turkish lira remains the top gainer against the $. This week Lira appreciated to six- month high level. Currently, Lira is being traded at TRY 7.16 level against $1.
• Spot iron ore price up on supportive futures market– Spot iron ore Fe 62% fines price yesterday moved up by $1.95/t d-o-d to $152.05/t CFR China. Recovering spot demand and rising iron ore futures supported the price. Speculative interests also strengthened on expectations of iron and steel demand recovering immediately after the Chinese holidays. Today, prices were heard to have moved up further by $5-6.
• Turkey’s auto sales up in Jan’21 – Passenger and light commercial vehicle sales in Turkey continued to increase in Jan’21. According to media reports, the sales surged 60.3% y-o-y to 43,728 vehicles.
• Turkish manufacturing industry remains strong– Turkey’s economy would remain strong post pandemic thanks to production and infrastructure sectors, highlighted Turkish industry minister. The country’s finished long steel exports have increased 11% m-o-m in Dec’20. Finished long steel exports have moved up to 0.99 mn t in Dec’20 as compared to 0.89 mn t in Nov’20.
• Ferrous scrap imports up by 18% in CY’20– Ferrous scrap imports to Turkey have increased by 18% y-o-y to 22.18 mn t in CY’20. US remained the largest scrap supplier to Turkey, with around 4.27 mn t in CY’20, other major countries were UK and Russia.