In a recently concluded bulk deal from UK, imported scrap prices to Turkey have plummeted heavily, with buyers pulling down their bids sharply. The depreciation of GBP (Pound) against the USD in the recent weeks, has contributed further to the swift fall in the price level from the UK. According to SteelMint’s assessment, the prices have dipped to over five-months low as similar price levels were seen in beginning of Oct’19.
At around closing of last week, a premium grade scrap yard in UK sold a 15,000 MT cargo to a Turkish steelmaker based in the Mediterranean region, comprising entirely of HMS 1&2 (80:20) at a price of USD 226/MT CFR Turkey. The shipment is expected for Apr’20.
This booking has pulled down the price by a further USD 15-16/MT in comparison to last Turkish booking. Prior to this, a Canadian recycler had sold a 50,000 MT mixed cargo to a mill in Marmara at an average price of USD 255/MT CFR Turkey, putting HMS 1&2 (80:20) price at USD 249/MT North American and had pulled down assessment from South European origins down to USD 242/MT CFR last week.
After normalizing the latest booking, SteelMint’s assessment for USA origin HMS 1&2 (80:20) stand at USD 232-233/MT, down from USD 249/MT during mid of previous week. As the UK’s currency GBP depreciated to USD 1.15-1.16 levels against USD in comparison to USD 1.30 levels 2 weeks ago, offers from the UK are likely to be on lower side.
Amid news of several mills in Turkey being temporarily shut down due to escalation of COVID-19 outbreak, the scrap demand in the coming weeks is expected to be on the slower side, while suppliers will look to sell their material at low price to clear their stocks.
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