Turkiye: Imported scrap prices hit 4-month low in recent deals

The imported scrap market in Turkiye witnessed some deals today, albeit at lower prices, after remaining quiet earlier this week, when most buyers had disappeared on the back of depressed domestic sentiments.

Meanwhile, imported scrap prices from the US continued to head south. However, suppliers are now reluctant to lower offers further due to material scarcity.

Additionally, a couple of deals were concluded recently at slightly lower prices. Despite the price levels dipping, buyers’ and steelmakers’ moods are likely to remain pessimistic. SteelMint’s assessment for US-origin HMS 1&2 (80:20) stands at $340-345/t CFR, down by $10/t w-o-w. Prices have hit a four-month low, as per data maintained with SteelMint.

Recent deals

• In a recent deal, a prominent US supplier booked HMS 1&2 (80:20) at $343/t, PNS, and shredded at $358/t CFR basis. The cargo is booked for December shipments.
• A bulk cargo, comprising a mix of HMS (80:20), shredded, and bonus scrap, was booked at an average price of $357/t CFR Turkiye. Out of this, HMS (80:20) was booked by the Turkish mill at $350/t, as per sources. The cargo was booked by an Aegean region-based steel mill last weekend.
• Another US-origin cargo, comprising HMS (80:20), was booked by an Aegean region-based steel mill at a price level of $355/t CFR Turkiye, SteelMint learnt from sources. The bulk cargo shipment is for November.

Furthermore, the country remained more interested in billet imports rather than its production due to increased input costs and the flexible pricing policy of Russian suppliers. Hence, scrap bookings slowed down significantly.

Additional factors leading to negative sentiments

• Lira maintains stability: The Turkish national currency, Lira, has maintained stability in the exchange market for the last two months. The Lira is currently at 18.6 levels against the dollar.
• Decrease in rebar prices continues: The downward trend in rebar prices continued for yet another week as buying interest from the end-customers remains insufficient. Turkish long steel producer ICDAS decreased its official price for domestic rebar by $15/t to $650/t exw-Biga and $661/t CFR Marmara. Mills are struggling to sell any volume even at lower prices due to limited demand. Offers from other local suppliers are now set at $635-640/t exw., depending on the region.

Outlook: The Imported scrap market is likely to remain subdued, owing to unsupportive domestic sentiments. Buyers and steelmakers are cautious and opting to wait and watch for clearer market directions.