Turkey: Imported scrap prices hit nine-year high in recent deals

With the latest deals concluded at record high levels, imported scrap prices touched nine-year high levels, as per data maintained with SteelMint. Turkish steelmakers have now accepted the high levels of imported scrap price as a sharp growth in other products like semi-finished and finished steel remain supported by imported scrap prices. Interestingly, most of the confirmed bulk cargo bookings have been registered by the European, Russian, and Baltic origin suppliers.

Prices have firmed up by $140 in just one month, since 23rd Nov’20, witnessing a sharp hike on a monthly basis. SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands at $475/t CFR Turkey, up by $37/t on w-o-w.

Notably, China’s resumption of imported scrap trade remained a hot issue in the market. SteelMint understands, that scrap prices may rise further by up to $20 once the Chinese buyers come back in the imported scrap market,

Recent confirmed trades – 

• In a recent deal concluded, in which a European bulk scrap cargo has been sold to a Western Marmara based steel mill at $480/t CFR Turkey basis, and the cargo comprises full of shredded scrap, however, the quantity was unconfirmed.
• In another deal, a Mediterranean region based steelmaker has booked a Russian A3 scrap cargo at $470/t CFR Turkey basis.

There were some more trades of USA and Baltic origin heard, however, it could not be confirmed during the time of publishing.

Market overview-

Turkish crude steel output up 11.6% y-o-y – World’s largest ferrous scrap importer- Turkey saw a hike of 11.6% y-o-y to 3.2 mn t in Nov’20 in its crude steel production during the same period a year ago.

Inquiries for billet increase – Inquiries for imported billet have increased over the week, however, suppliers are still in a strong mood, driven by costlier raw materials, while the spread between offers and bids were huge.

Spot iron ore fines price increased by $6/t w-o-w – Chinese spot iron ore fines (Fe 62%) increased by around $6/t on a weekly basis and stood at $ 163.05/t CFR China yesterday against $157.05/t a week before.