After witnessing decline in prices a couple of days back, imported scrap prices in Turkey have rebounded yesterday.
Ferrous scrap importers in Turkey were less active during the last couple of weeks on continuously weakening currency (Lira against USD) and sluggish demand for finish steel in both domestic and export markets. However, importers have resumed trades this week amid lowering inventories. The buying interest has improved as the prompt requirement for ferrous scrap observed among few steel mills in the country.
Ferrous scrap prices in the Turkish import market fell sharply following 2-3 deals concluded in the mid of the week. However, the market has regained its earlier price levels quickly in the latest deal confirmed today following the pick-up in demand.
In the most recent deal, a steel producer based in Iskenderun region booked a Baltic cargo comprising 10,000 MT HMS 1&2 (80:20), 9,500 MT Shredded and 5,000 MT of P&S at an average price of USD 347.5/MT, CFR Turkey.
According to SteelMint’s assessment, recent deal concluded at regained prices put the price assessment for USA origin HMS (80:20) scrap at around USD 343-345/MT, CFR Turkey.
Few steel producers in Turkey who have urgent requirement of scrap are buying scrap actively. Most of the buyers are interested for HMS 1&2(80:20) for USD 335/MT, CFR levels but Baltic suppliers are quoting it at around USD 348/MT, CFR
Lira hits a new record low, depreciates 15% in last one month – Turkish currency Lira has continued to lose its value against USD further due to the political uncertainty in the country created by the calling of early elections. Today USD/TRY rate stood at 4.72 which was trading at around 4.52 a week ago. In last one months’ time Turkish Lira (TRY) depreciated by almost 15% against USD which was trading at 4.09 on 25th Apr’18.
Trades concluded earlier mid of the week in Turkey’s market –
1. Marmara region based importer booked a Baltic cargo (ex-Poland) from a UK based merchant comprising 16,000 MT HMS 1&2 (80:20) at USD 338/MT and 4000 MT Bonus at USD 348/MT, CFR.
2. Another UK supplier sold 7,000 MT HMS 1&2 (80:20) at USD 333/MT and 3,000 MT Bonus at USD 343/MT, CFR to Iskenderun based mill in Turkey.
Weak demand causes further fall in export prices for billet and rebar in Turkey – Major steel mills in Turkey witnessed no improvement in the demand for rebar and wire rod in both exports and domestic markets. Rebar export prices assessed in the range of USD 540-550/MT, FoB Turkey compared to USD 545-555/MT, FoB last week. While billet export prices fell by USD 5/MT W-o-W and remained at around USD 530-535/MT, FoB Turkey.
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