After a brief lull during the Eid holidays since last weekend, imported scrap bookings to Turkey picked up again in the last 2 days, as several deep-sea cargoes got concluded at stable prices. In was witnessed that the normal price differential between different origins like USA, Baltic and Benelux has narrowed considerably, a trend generally observed only when supply tightness persists.
In the latest contract concluded yesterday, a Baltic origin supplier has sold a composite cargo to a Mediterranean region-based steelmaker, comprising of HMS 1&2 (80:20) at USD 253/MT, Shredded at USD 258/MT and Bonus scrap at USD 263/MT CFR Turkey, for June-end shipment. This price is at least USD 3/MT higher than last Baltic origin booking by Turkish mills. However, the USA origin price did not witness much movement.
In another booking concluded on Wednesday, a USA based major recycler, sold a mixed grade cargo to an Aegean region-based mill, consisting of HMS 1&2 (80:20) at USD 253/MT, Shredded at USD 258/MT and Bonus scrap at USD 263/MT CFR Turkey, for June-end shipment. This comes at around the same price level as the previous USA origin bookings last week.
Among other bookings in the last 2 days, a Baltic recycler from Latvia sold a bulk cargo with HMS 1&2 (80:20) at USD 252/MT CFR Turkey, for early July shipment, while a day prior, a France origin cargo was sold to another Mediterranean region mill at USD 250/MT, higher by around USD 3-3.5/MT against previous booking from an equivalent region.
On normalizing the latest bookings, SteelMint’s assessment of USA origin HMS 1&2 (80:20) remains at USD 254/MT CFR Turkey, same as that at the closing of last week, while the assessment for European origin HMS 1&2 (80:20) now stands at USD 250/MT CFR, up by USD 3/MT CFR against the previous week.
On an overall basis, May month witnessed almost double the number of bulk cargo bookings to Turkey in comparison to bookings in April, as per records with SteelMint, as mills are hopeful of improvement in the steel export sentiments post Eid holidays, with further increase in demand expected, at both global and domestic levels.
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