Turkiye: Imported scrap prices rebound in recent deals after a pause

Imported scrap prices to Turkiye have rebounded as a result of a recently concluded US deal. Mills have resumed bookings after a week of waiting and expectations of improvement in demand for finished steel. Suppliers kept their offers high owing to material shortages. However, buying interest largely seems to be limited. Meanwhile, fresh deals are happening for January shipments at increased prices.

The trade shipments are likely to start in the second half of January 2023. SteelMint’s daily assessment for HMS 1&2 (80:20) from the US remains at $385/t CFR Turkey.

Considering the moderate to slow finished steel demand in the domestic as well as overseas markets, buyers could opt for need-based buying.

Recent deals

• An Aegean region-based steel producer booked two bulk cargoes. One cargo comprised of HMS (80:20) at $386.5/t and bonus at $406.5/t CFR basis. Another cargo comprised HMS (80:20) at $387/t, shredded, and bonus at $407/t CFR each.
• The same Aegean region-based mill booked another bulk cargo from Europe earlier in the week. The cargo comprised of HMS (80:20) at $382/t and bonus at $402/t CFR levels.
• A Western Maramara-based steel mill has booked bulk cargo from the US. It comprised HMS (80:20) at a higher price of $387/t CFR Turkiye, SteelMint learnt from sources. The cargo is booked for the second half of January.
• A West Black Sea region mill booked a North Europe-origin bulk scrap cargo comprising HMS (80:20) at $380/t CFR Turkiye, last week.

Domestic market slows down

• Lira maintains stability: The Turkish national currency, the lira, continued to remain stable for yet another week in the currency exchange market. It is currently at 18.68 against the US dollar. The lira’s value has stabilized since nearly the last two months. 
• Rebar prices decline: Turkiye’s rebar export market has almost remained at a stable level but internal discounts have been floated as per a market insider. The country’s longs producer, ICDAS, announced a sharp decrease in its rebar offers.

Outlook: Considering the winter holidays starting from 24 December, the market is likely to remain closed. Hence, Turkiye’s steelmakers are booking fresh slots for shipments in the second half of January.