Turkish buyers continued to delay making fresh scrap bookings. However, rapid fluctuations in prices have been observed in a few deals reported early this week.
Confirmed deals-
- Latest deal reported earlier this week on 28th Sep’20, in which a Mediterranean region based steel mill has booked bulk scrap cargo from USWC, comprising of 10,000 t of HMS 1&2 (80:20) at $293/t CFR, 12,000t of shredded at $298/t CFR, 8,000 t of bonus at $303/t CFR Turkey basis. USWC sellers don’t seem to have too many cargoes, SteelMint learnt from its sources.
- On 24th Sep’20, a Black sea region-based steelmaker has booked a Baltic origin bulk cargo, consisting of 12,000 t of HMS (80:20), 10,000 t of shredded, 1,000 t of bonus, and 1,000 t of busheling at an average price of $299/t CFR Turkey.
- While another deal concluded on 23rd Sep’20 by the same steelmaker has booked bulk cargo consisting of 11,000 t of HMS (80:20) at $296/t CFR Turkey, 15500 t of shredded at $301/t, and 2,000 t of bonus at $306/t CFR Turkey basis.
SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $295/t CFR Turkey level, down by $3 w-o-w.
Key highlights –
- Turkish buyers expect that imported scrap prices may fall further.
- US scrap suppliers are holding their offers firm at around $293-295/t CFR, due to strong demand in the US domestic market.
- Imported billet prices to Turkey have also started to fall and have come down by $5-10/t w-o-w.
- Due to the sluggish finished steel market, Turkish scrap prices remain less workable for the market sentiments at the moment.
- Ongoing week-long Chinese holidays are also expected to keep global steel market less active next week.
- After touching a record low of 7.8, the Turkish Lira rebounded this week and is currently trading at 7.6 against $1.
- Market participants expect that Turkish mills may start deep-sea cargo bookings for Nov shipments shortly.
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