After observing decline in prices in week’s beginning, prices have regained in yesterday’s deals. Few buyers booked 3-4 fresh deals in order to fulfill their urgent need of scrap.
Turkey-based steel mills had turned silent after witnessing several deals to have more clarity about European commission safeguard tariffs in the closing last week. However, few buyers have resumed scrap bookings at inched up prices this week. Steel mills with shortage of scrap are buying right now in the market. Three deep sea cargo bookings heard traded on Wednesday totaling 115,000 MT ferrous scrap.
According to SteelMint’s assessment, the recent deals concluded have pushed the price assessment for USA origin HMS (80:20) scrap at around USD 343-344/MT, CFR Turkey, up USD 2-3/MT as against the report of USD 340-341/MT closing last week.
However in the beginning of this week prices had come down to USD 339-340/MT, CFR levels which have increased in recent deals concluded. In line with it, the premium for HMS 1&2 (80:20) scrap for USA over European origin stood at USD 8-9/MT.
Turkish currency Lira depreciated sharply again in a weeks’ time. USD/TRY rate hit record low at 4.90 a week ago. Today which is trading at around 4.82 with minor appreciation in last 4-5 days. However, imports turned costly on weak TRY and participants remained apprehensive about less stability of currency.
Turkey imported scrap trade-wise updates –
1. A leading steel producer in an Izmir region booked Baltic cargo from a major supplier, comprising 30,000 MT of Shredded, 4,500 MT of HMS 1&2 (80:20) and 5,500 MT of bonus at an average price of USD 351/MT, CFR on Wednesday.
2. Another steelmaker based in Marmara region booked a 40,000 MT mix grade cargo from USA supplier, comprising HMS 1&2 (80:20) at USD 342/MT, Shredded at USD 352/MT and Bonus scrap at USD 357/MT, CFR Turkey.
3. The steelmaker based in Marmara region booked another 35,000 MT European cargo, comprising 18,000 MT of HMS 1&2 (80:20), 10,000 MT of Shredded and 7,000 MT of mixture of P&S and HMS 1 at an average price of USD 334/MT, CFR.
4. In a deal heard earlier in the beginning of the week, Iskenderun region based steel mill searched for prompter shipment and booked USA origin 29,500 MT cargo, comprising 16,000 MT of HMS 1&2 (90:10), 8,000 MT of Shredded and 5,500 MT of Bonus at an average price of USD 344/MT, CFR. This shipment is scheduled for full-August delivery.
The European Commission’s introduction of safeguarding tariffs are likely to support Turkish Flat steel demand and demand for rebar should recover further.
Offers for September shipments are available in the market however, few buyers were looking for prompt delivery and thus did not book September shipments. Participants are waiting for pick up in country’s finish steel demand which has shown sign of improvement in both local and export markets.
Rebar prices stable on W-o-W – Low domestic and overseas rebar inventories have resulted in inch up in rebar import bids from importers this week which will support scrap import prices. Rebar export prices assessed stable in the range of USD 540-545/MT, FoB Turkey and domestic rebar assessed at 550-560/MT, ex-works.
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