Turkey’s imported scrap prices continued to decline in the recent deals. Turkey has been markedly absent from the US deep-sea scrap export market for more than a week, with mills in the region holding out for lower prices. SteelMint’s assessment for US-origin HMS 1&2 (80:20) now stands at $430/t CFR Turkey, down by $15/t w-o-w.
Recent deals –
- In a recent deal, an East Marmara region-based steel mill has booked bulk cargo from USA. The cargo comprised 20,000 t of shredded at $435/t and 10,000 t of HMS 1&2 (80:20) at a price of $430/t CFR basis.
- In another deal, an Agean based buyer has booked Baltic origin bulk scrap cargo of shredded at $425/t, CFR Turkey basis.
Market sentiments –
- Market sentiments remained negative this week, prices would bottom-out by the end of Mar’21. The current situation seems only to be worsening from the buyers’ point of view in the US market. In addition to supply shortages, importers are now dealing with shipping difficulties, especially with regards to obtaining containers and serious local port congestions
- Some major Turkish mills decreased their domestic scrap buying prices further yesterday
- Currently, 1 USD= 7.36 TRY compared to 7.52 a week ago
- Despite the decline seen in domestic and imported scrap prices, Turkish mills’ domestic rebar pricing remained relatively stable on a w-o-w basis.
Outlook- Turkish mills are expected to book more cargoes for Apr’21 shipment, however, chances of a sharp decline in prices in near term look very limited.
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