Turkey’s import scrap market has revived towards the end of the week in terms of price inquiries after it recovered from the exchange rate shock experienced at the beginning of the week. Following the silence in the market caused by market players’ wish to see a clearer picture following the sacking of Turkish Central Bank president Naci Agbal, the market now seems more ready to act.
SteelOrbis has learned that some mills are willing to conclude new deep sea scrap deals in the coming days, with one Marmara-based producer even rumored to be seeking two deep sea cargoes. As a result, price inquiries for prime grade scrap have been accelerated over the past two days. The mood in the market seems to be changing with suppliers keeping their offers firm, while a market source reported that there is a shortage of shredded scrap, which may cause the price gap between HMS I/II 80:20 scrap and shredded to widen again. It is also known that deep sea scrap suppliers have concluded some sales to alternative markets during the past ten days, though one Turkish producer stated that these sales do not total much more than usual and will have little effect on the allocation for Turkey. According to this Turkish long steel producer, Turkey has no time left to wait before concluding deep sea cargoes, but there are also many cargoes in the market available for April shipments. Turkey has not completed its purchases on the deep sea side for April shipments and it is also expected to purchase at least 35 cargoes for May shipment. As of today, March 26 SteelOrbis has learned that some mills are receiving demand from the Far East for rebar at price levels that are considered to be “good”. Also, China is seeking opportunities to buy Turkish billet amid the high quotation levels in its local market. Expectations of Turkish steelmakers and scrap suppliers differ at this moment, while all eyes in the market are focused on the next deal that would eventually signal the next price level. Having said that, a price recovery is considered possible by most observers. Currently, SteelOrbis’ estimations for deep sea HMS I/II 80:20 scrap are in the range of $420-430/mt CFR Turkey.
On the short sea side, suppliers that had higher tonnages on hand and were willing to reduce their prices to sell to Turkey have completed their sales. SteelOrbis has learned that Turkey has bought short sea HMS I/II 80:20 scrap from Bulgaria in the range of $375-380/mt CFR in the current week. Meanwhile, it is heard that ex-Adriatic HMS I/II 80:20 scrap has been sold in the range of $380-385/mt CFR towards the end of the week. Amid the changing market mood and due to higher demand on the short sea side, some suppliers have taken a step back and are expecting a rise in prices in the coming week.