Turkey: Imported scrap prices range-bound in limited trade

Turkey’s imported scrap market saw a flurry of deals in the last couple of days after remaining silent earlier this week. However, despite favourable offers for deep-sea cargoes from suppliers, limited deals have been recorded owing to dull finished steel demand from both the overseas and domestic markets.

SteelMint's imported scrap price assessment for US-origin HMS 1&2 (80:20) stands at $496/tonne (t) CFR Turkey, marginally down by $1/t against last week.

Recent deals

• In a fresh deal, a West Marmara-based steel mill booked a bulk US cargo comprising HMS 1&2 (80:20) at $496/t CFR and shredded scrap at $514/t CFR.
  
  
• Prior to this, another deal was concluded, in which an Aegean region-based steel mill booked a US bulk cargo, comprising 30,000 t of HMS 1&2 (80:20) at $498/t CFR Turkey. The cargo was booked for Aug’21 shipments.
  
  
• Furthermore, a European scrap dealer sold bulk scrap cargo to an east Marmara-based steelmaker. The cargo comprised 15,000 t of HMS 1&2 (80:20) at $500/t and 9,000 t of shredded, and 4,000 t of bonus at $515/t CFR each.
  
  
• Another European scrap recycling company sold 20,000 t of HMS 1&2 (80:20) bulk cargo to east Marmara-based steel mills at $496/t CFR Turkey for Aug’21 shipments.
  
  Turkish market updates
  
  
• National currency gains value: The national currency, lira, gained value against the dollar. Currently, the currency is being traded at 8.69 against the dollar, as compared to 8.7 recorded last week.
  
  
• Rebar prices decline further: Due to dull sentiments in the finished steel market, Turkish rebar export prices declined further by $5/t w-o-w to $735/t FoB.
  
  
• Ferrous scrap imports drop 19% in May'21: Turkey, the world's leading buyer of seaborne ferrous scrap, recorded imports at 1.96 million tonnes (mn t) in May'21, a straight 19% drop against 2.42 mn t in Apr’21. Owing to the Eid holidays, the country's steel mills remained less active in booking scrap cargoes in May. The UK was the top exporter to Turkey with 0.27 mn t, followed by the US and Russia, as per SteelMint data.
  
  

Outlook
Turkish steelmakers and end-buyers will likely remain active in booking more cargoes for Aug’21 shipments to restock inventory before the upcoming Eid holidays in the third week of Jul’21.