Imported scrap prices in Turkey reported a rebound after declining continuously for 3 months.
SteelMint learned from market participants that Turkish imported scrap market has observed a recent deal at significantly recovered prices. With prices having dropped to 3 year low levels last month, global suppliers had resisted against accepting any lower bids, however, with steelmakers now looking to actively procure for November shipments, most of the participants anticipate that scrap prices are likely to remain supported in the short term and may climb up further.
In recent deals reported, an Aegean region-based steelmaker booked a bulk vessel with 40,000 MT of mixed cargo scrap from a USA based recycler, comprising of 23,000 MT of HMS 1&2 (80:20) at USD 233/MT CFR and 17,000 MT of Shredded at USD 238/MT CFR Turkey. The shipment is expected for November 2019.
Prior to this, last week a Marmara region-based steelmaker booked a bulk vessel with 40,000 MT of mixed cargo scrap from a USA based supplier, comprising of 33,000 MT of HMS 1&2 (80:20) at USD 226/MT CFR and 7,000 MT of Shredded at USD 231/MT CFR Turkey,
As per SteelMint’s methodology, an assessment of US-origin HMS 1&2 (80:20) scrap has now rebounded to USD 233/MT, CFR Turkey, increasing by USD 6-7/MT against last week’s report. While assessment of European origin HMS 1&2 (80:20) now stands at around USD 228/MT, CFR Turkey
Although the prices have rebounded by USD 6-7/MT, Turkish imported scrap assessment still stands at around3 year low level, having previously dropped by over USD 75/MT in total during the last 3 months.
Turkish rebar export prices stand stable at USD 395-400/MT range, FoB, while the market predicts some improvement in demand from the overseas market.
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