Turkish imported scrap prices volatile, buyers expect correction

Global scrap market driver Turkey’s imported scrap prices have seen several fluctuations since the beginning of the week. Limited trade was seen in the first half of the week at higher prices. Suppliers are even aiming to quote above $540/tonne (t) for July shipments. However, with mills holding back purchases in the second half of the week, price indications have softened.

SteelMint’s price assessment of U.S.-origin HMS 1&2 (80:20) stands stable at $510/t CFR Turkey after rising $3/t end of last week.

Recent deals

• Recently, a U.S.-based scrap dealer sold the bulk cargo to a Turkish steel mill, comprising entirely of HMS 1&2 (80:20) at $525/t CFR Turkey. However, the trade remained unconfirmed till the time of publishing the report.
• In another deal, a Mediterranean region-based steelmaker has booked European bulk scrap cargo. The cargo comprised of 19,000 t of HMS 1&2 (80:20), 11,000 t of shredded, 8,000 t of bonus, and 2,000 t of busheling scrap at an average price of $516/t CFR Turkey basis.
• Prior to this, a Turkish steel mill had booked US-origin bulk cargo of 44,000 t of imported HMS 1&2 (95:5) at $515/t CFR Turkey.

Market sentiments

• Turkish Lira depreciates further: The Turkish Lira continues its seesaw against the dollar, depreciating further. It is now being traded at $1=TRY 8.44 vis-à-vis 8.38 level a week ago.
• Turkish domestic scrap purchase price falls: Turkish domestic scrap purchase prices have also come down on recent fluctuations in the national currency and a downturn in the Chinese futures market. Buyers are holding back in expectations that some price correction is likely to happen in the near term.
• Rebar prices on the higher side: Turkish domestic rebar (12-32mm) prices remained on the higher side. Rebar is now being offered in the range of $750-765/t exw levels. However, steel mills are even selling at discounts to corner maximum market share.

Outlook
Turkish buyers are anticipating that imported scrap prices will see some correction in the near term considering steeper declines in Chinese steel futures.