Turkiye: Scrap import market quiet during holidays, offers likely to rise

The Turkish imported scrap market stayed quiet this week as most steel producers remained out of the market during the Eid holidays. Negotiations were almost absent for fresh bookings for ferrous scrap, as the importers didn’t float any fresh bids.

The upward trend in the imported scrap market continued after a round of fresh bookings towards last weekend. Suppliers are pushing offers higher for the next round of bookings.

SteelMint’s price assessment for US-origin HMS 1&2 (80:20) is at $410/t CFR, a hike of $10-15/t w-o-w.

Recent deals

• A Black sea region-based steel mill booked 30,000 t of USA-origin bulk cargo comprising 13,000 t of HMS 1&2 (80:20) at $410/t, 10,000 t of shredded at $430/t and 7,000 t of bonus at $430/t on CFR basis.
• An East Maramara-based steelmaker booked a 22,000 t bulk cargo from a UK-based supplier. The cargo comprised 6,000 t of HMS 1&2 ($397/t) and 18,000 t of shredded at $422/t CFR.
• Two other bulk cargoes were booked by a West Maramara-based steel mill at $407-408/t CFR.

Factors supporting Turkish scrap prices

• Local scrap prices rise further: Turkish steelmakers kept pushing their domestic scrap prices higher amid strong import offers and firm finished and semi-finished steel prices. A majority of the mills have announced a hike of TRY 250-300/t in their domestic scrap purchase price. Other mills keep their prices unchanged due to the continued volatility in the national currency.
• Billet prices track scrap trend: Following the rise in domestic and imported scrap prices, Turkish billet producers revised their offers and tried to sell at higher prices. However, the new price levels are yet to be accepted by consumers. Furthermore, buyers refrained from taking positions during the Eid holidays.
• Rebar prices jump as scrap prices surge: As the holiday period continues in the country, activities in the local rebar market are tepid. While some producers have kept their prices unchanged, others have reduced offers slightly. Long steel producer, ICDAS, announced a hike in rebar prices to $720/t exw Biga and $731/t CFR Marmara, up by $20/t w-o-w.

Outlook: Scrap suppliers likely to hold their offers for a while, considering the fact that demand is expected to increase further after the holidays. Hence, offers are likely to increase further in the near term.