Turkiye's imported scrap trades remain limited despite drop in offers

Trade activities remained subdued in Turkiye's imported scrap market, with pessimistic vibes prevailing as buyers and steelmakers remained on the sidelines. Negotiations were almost absent as both buyers and suppliers failed to come into an agreement on prices. However, steelmakers are trying to source scrap at discounted prices, following the continued decline in finished and semi-finished steel prices. However, some buyers have shown interest for prompt shipment cargoes.

On the other hand, suppliers are reluctant to lower offers further. Steelmakers are targeting $330/t levels now, although suppliers believe that buyers' price expectations are too low, and not quite possible to match.

SteelMint's assessment for US-origin HMS 1&2 (80:20) stands at $335-340/t CFR, down $5/t w-o-w.

Furthermore, imported scrap prices have inched down in a recent deal concluded from Germany. The cargo comprising HMS 1&2 (80:20) was sold at $334/t CFR Turkiye by an Aegean-based steel mill. Turkiye's ferrous scrap imports were down by 14% to 1.38 million tonnes (mnt) in September compared to 1.6 mnt in August.

Domestic sentiments bearish

• Lira maintains stability: The Turkish national currency, Lira, has maintained stability in the exchange market for the last two months. It is currently at 18.6 against the dollar.
  
  
• Local scrap prices move down: Turkiye’s steel producers have gradually lowered their domestic scrap purchase prices in the backdrop of an unfavourable finished steel market. A few steelmakers decided to revise their purchase prices for local scrap downward last weekend. Weakened import scrap prices and the continuous decline in domestic and overseas steel prices led to the downtrend.
  
  
• Billet market continues to weaken: Persistent weak demand for billets and inadequate support from finished steel producers were among the main reasons the market downtrend. Turkish semi-finished steel producers are offering their products to local customers at $550-560/t exw versus $560-565/t exw earlier. Some mills are even ready to import billet, whereas a few other mills are procuring domestic material with an eye on immediate availability.
  
  
• Rebar sales modest despite lower prices: The downward trend continues in Turkiye’s rebar market as producers are trying to spur buying activity. ICDAS kept its prices lower at $635/t exw Biga and $646/t CFR Marmara, while the workable level could be $10/t lower, according to market sources. Offers from other local mills range between $625-640/t exw depending on the region.
  
  

Outlook: Suppliers are trying to meet buyers’ expectations with a few deals getting concluded recently but mills are not ready to increase their bid levels in a weak market.