Turkiye: Imported scrap prices rise further on active buying, limited material availability

Turkish steel mills continue to replenish their stocks with active imported scrap bookings throughout the week. Scrap suppliers remain aggressive in selling their material amid continued material shortage and logistical problems. SteelMint’s price assessment for US-origin HMS 1&2 (80:20) stood unchanged w-o-w at $395-400/t CFR, moving up sharply by over $40/t w-o-w.

Recent deals

• Western Marmara-based steel mills booked fresh bulk cargo comprising 33,000 t of HMS at $390/t and 5,000 t of bonus at $405/t CFR Turkiye basis. The is scheduled for September second half shipment.
• In a recent deal, USA-origin cargo comprising HMS (90:10) was booked at $400/t CFR Turkiye, by a Turkish steel mill.
• A US-origin cargo containing HMS 1&2 (80:20) was booked by a West Marmara-based steel mill at $396/t CFR Turkiye. The lot was booked for prompt shipment, as per SteelMint sources.
• A Finland-origin cargo containing HMS 1&2 (80:20) was booked by a West Marmara-based steel mill at $390/t CFR Turkiye, as per SteelMint sources.
• In another deal, US-origin cargo comprising HMS (80:20) was booked at $394/t CFR Turkiye, by an Aegean region-based steel mill.
• An Iskenderun-based steel mill has booked the cargo middle of last week. The cargo comprising HMS 1&2 (80:20) was sold at $377/t CFR Turkiye.

Turkiye’s market overview

• Scrap imports drop in June on active billet bookings: Turkiye’s ferrous scrap imports were recorded at 1.59 mnt in June, a decline of 28% m-o-m compared to 2.22 mnt in May. The USA continued to be the largest supplier at 0.36 mnt, followed by the UK and the Netherlands at 0.28 mnt and 0.16 mnt respectively. On a y-o-y basis, scrap imports decreased by 19% as against 1.96 mnt in June. Ferrous scrap imports saw a downfall in June on currency depreciation, suspension of operations at mills, and active billet imports.

Turkiye’s steel billet imports rose sharply by 69.12% m-o-m in June to 0.46 mnt from 0.27 mnt in May, as per data recently released by customs. Russia was the major exporter with 0.37 mnt in the month under review. 

 The Turkish national currency depreciated slightly to 17.9 against the dollar. 

• Domestic scrap prices up on back global prices: Turkiye’s domestic scrap prices moved up on the back of strong imported scrap prices and finished steel demand last weekend. Many steelmakers started to push their domestic scrap purchase prices on better sentiment in imported scrap and increase in finished steel prices. Some mills are still cautious in increasing scrap prices on instability in currency exchange rates.
• Rebar prices head north: Finished steel producers have decided to increase rebar prices further to increase imported scrap prices and improved demand. Turkiye’s long steel producer ICDAS announced a $20/t increase in its domestic rebar prices. Offers are now set at $650/t exw Biga and $661/t CFR Marmara. Offers from other domestic suppliers are ranging within $630-665/t exw depending on the region.

Outlook: The EU suppliers have set a target of over $410/t CFR for HMS material due to the water level problems in summer and material collection issues.