After observing long holiday weekend for a religious festival, Turkey-based steel mills have picked up their scrap imports witnessing few recent bookings concluded at almost stable prices. USA based scrap suppliers remained positive in the markets and price expectations remained at firm levels.
According to SteelMint’s assessment, recent deals concluded kept the price assessment for USA origin HMS (80:20) scrap almost stable at around USD 355-357/MT, CFR Turkey against the last report towards last week close. The premium for HMS scrap from USA over northern European stood at USD 7-9/MT.
The price gap between HMS 1&2 and Shredded widened further to USD 13-15/MT on strong demand for high-grade scrap and tightened supply. Steel mills in Turkey remain more inclined towards booking high-grade scrap like Shredded, Bonus and P&S scrap. Owing to the higher cost of EAF steelmaking these premiums are unlikely to narrow down anytime soon.
Uncertainty about future price trends continued in Turkish markets as parliamentary and presidential elections are now scheduled on 24th June in the country. Most of the participants are optimistic about steel markets and stability of Turkish currency Lira after elections.
Turkish steel mills have been looking for more European scrap amid strong demand however, availability is increasingly limited for remaining mid-July deliveries.
Turkey imported scrap trade-wise updates –
1. A steelmaker based in Iskenderun region booked USA origin cargo Yesterday from a leading supplier-SIMS containing 30,000-33,000 MT scrap comprising 15,000 MT HMS 1&2 (80:20) at USD 355/MT, 15,000 MT of P&S scrap at USD 370/MT and upto 3000 MT of Shredded at USD 370/MT, CFR Turkey. According to sources, this cargo is due for July shipment.
2. Another USA based supplier sold around 37,000 MT scrap to Iskenderun region based importer Bastug on Monday comprising 15,000 MT of HMS 1&2 (90:10), 20,000 MT of Shredded and 2,000 MT of Bonus at an average price of USD 364.5/MT, CFR Turkey
3. A third steel mill in the Iskenderun region booked a Benelux origin cargo comprising 18,000 MT of Shredded, 15,000 MT of Bonus and 5,000 MT of New Cuttings scrap at an average price of USD 364/MT, CFR Turkey.
Few limited quantity deals for rebar heard to have booked in the Turkey markets however demand hasn’t picked up considerably yet and weakening lira remained a matter of concern.
Rebar export prices assessed in the range of USD 545-550/MT, FoB Turkey and domestic rebar assessed at 540-550/MT, ex-works. While billet export prices remained at around USD 535-540/MT, FoB Turkey.
Turkish currency Lira remains nearly stable this week however weak as against USD again. Today USD/TRY rate stood at 4.75 which was trading at around 4.72 a week ago.
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