Imported ferrous scrap market sentiments in Turkey seems to be softening this week and has witnessed the decline in prices in deals that have been concluded recently.
SteelMint’s reference index for US origin HMS (80:20) after normalization now stood at USD 345/MT, CFR Turkey which has fallen by USD 5 on W-o-W basis as the prices were assessed at USD 350/MT, CFR Turkey last week.
In a recent deal confirmed for US material, a leading steel producer from Turkey booked a cargo containing HMS 1&2 (90:10) at USD 347/MT, CFR Shredded at USD 350/MT, CFR and P&S at USD 355/MT, CFR Turkey from a mill based in Texas. Though the volumes of materials in cargo were not heard.
Most of the participants were expecting that Turkish buyers may remain silent till the revision of new buying strategies to be decided in the International Rebar Exporters & Producers Association (IREPAS) conference and the clear market direction and precise price trends would be decided after this conference scheduled between 24-26 Sept’17.
The production costs from electric arc furnaces have increased now as the electrodes and refractory materials used to line in furnaces priced higher. Buyers were expecting the cost compensation for this from the lowered prices for scrap purchase.
The Turkish imported scrap market is witnessing the ample ferrous scrap supply, added to which downward pressure on imported iron ore prices resulted in the lowering of scrap prices.
During first seven months period of CY17, Turkey has imported 11.33 MnT of ferrous scrap, up 11% Y-o-Y against 10.23 MnT ferrous scrap imports during the same period of CY16 (Jan-Jul’16).
Rebar and billet prices in Turkey also remained stable this week. Turkey Rebar export offers were assessed at USD 545-550/MT, FoB, stable against last week’s assessment.
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