New deals were heard in Turkey’s import scrap market, indicating a stabilization in deep sea scrap prices on the lower end. Meanwhile, with a new ex-US scrap booking, HMS I/II 80:20 scrap prices have increased a bit and are now closer to the initial expectations of $375/mt CFR.
SteelOrbis has learned that an ex-US scrap deal was closed by a Marmara-based producer for HMS I/II 80:20 scrap at $374/mt CFR and shredded scrap at $394/mt CFR. With this deal, ex-US scrap quotations have increased by $2.5/mt.
Meanwhile, an old Netherlands deal was disclosed to the market today, August 24, done by another Marmara-based producer, with the HMS I/II 80:20 scrap standing at $369/mt CFR.
Despite the deals abovementioned, Turkey’s focus today was the interest rates announced by the Central Bank of the Republic of Turkey (CBRT). As SteelOrbis mentioned yesterday, the highest increase was expected to be 250 base points, but CBTR decided to increase them by 750 base points and shocked the market. Turkish lira has gained 5.36 percent of its value back in mere hours and the TRY-US dollar exchange rate decreased to 25.74 to a dollar. Amid the current circumstances, trading has almost stopped in Turkey, with market players evaluating their next move. A Baltic scrap supplier commented that “Today, no one will sell or buy anything.” Another market player said, “This was not a gradual rise, significantly higher than anticipated, hence we shall wait and see”.