Turkey: Imported scrap offers firm, limited deals reported
Turkish deep-sea scrap import prices remained unchanged in latest deals, SteelMint understands. On the one hand, buyers need to book few more cargoes for Dec '21 ...
Turkish deep-sea scrap import prices remained unchanged in latest deals, SteelMint understands.
On the one hand, buyers need to book few more cargoes for Dec '21 shipments, it seems.
On the other hand, Turkish steel mills may get closed for maintenance or production cutdown during winter. Hence, it is expected that the market would remain quiet for Jan'22 cargo shipment bookings.
Meanwhile, construction and infrastructure activities may slow down in December.
SteelMint's assessment for US-origin HMS 1 & 2 (80:20) currently stands at $499/t CFR Turkey, largely stable w-o-w.
- A USA-origin cargo containing HMS 1&2 (80:20) was booked by a steel mill based in the West-Marmara region was booked at $500/t CFR, towards last weekend.
- Few more deals were heard concluded at $490-495/t CFR levels. However, the details remained unconfirmed till the time of publishing this report.
Russian suppliers likely to reduce offers for Dec shipments: Russian suppliers are likely to reduce fresh offers for December shipments to Turkish scrap buyers. Russia is increasing tariffs on ferrous scrap exports to Euro 100/t ($113/t) from the current Euro 70/t, as per SteelDaily reports. The tariff will be effective for six months from 1 Jan'22. The tariff hike is meant to check volatility in the domestic prices of raw materials. Russia exported 4.5 mn t of scrap in CY'20, with Turkey, South Korea, and Belarus being the key importers.
Turkish market highlights
- Lira hits historic low against $: The Turkish lira sunk to a new historic low against the US dollar this week, with factors leading to currency depreciation, including rising inflation and looming economic uncertainty. Lira, the worst-performing emerging market currency, reached TRY 10.7 after refreshing the all-time low against the dollar.
- Lira depreciation keeps domestic rebar prices supported: Due to the depreciation of the national currency, Turkey's prices for rebar have increased. ICDAS has raised its domestic rebar prices to TRY 8,990/t exw-Biga and TRY 9,100/t CFR Marmara since the end of last week. Other steel producers followed the same tendency.
Turkey's scrap market is likely to remain stagnant in the near term, as buyers resist paying higher prices for the Dec'21 shipments.