The ferrous scrap market in world’s largest importer Turkey has seen sudden nose-dive in the prices heard within last few days. Prices remained falling every next day and in every next booking heard so far in this week.
SteelMint’s reference index for US origin HMS (80:20) now stood at USD 315-320/MT, CFR Turkey which is down by USD 15-20 further in last five days as earlier to this prices were assessed at USD 335-340/MT, CFR Turkey.
“The offer levels in Turkey have recently plunged just around USD 320/MT, CFR.Buyers are trying to build up pressure on the suppliers as they believe to book around 10-12 more cargoes in near terms for October deliveries” a market participant in Turkey shared with SteelMint.
Turkey Scrap Trade Updates –
1. IDC – a leading steel mill based in Izmir region Turkey booked a cargo from major scrap collector AIM Ontario, Canada. Cargo was sold at an average price of USD 312.5/MT containing 10,000-15,000 MT Shredded; 30,000 MT HMS 1&2 (90:10) and 10,000 MT P&S scrap respectively.
2. Another deal confirmed last week between same Canadian supplier and a major steel producer Bastug Metallurgy in Turkey averaged at USD 325/M, CFRT for cargo comprising of 35,000 MT Shredded; 10,000 MT HMS 1&2 (90:10) and 5,000 MT Bonus respectively.
3. A trade deal concluded last week between Canada based scrap recycler AIM and Istanbul based steel producer ICDAS.This deal confirmed for October first week delivery and averaged at USD 330/MT containing 10,000 MT HMS(90:10);35,000 MT Shredded and 5,000 MT Bonus scrap respectively.
Most of the market participants returned from the International Rebar Exporters & Producers Association (IREPAS) conference in Athens, which ran between 24-26 Sept’17.
Many of the traders indicate softening of the market further by USD 5-10/MT but it is hard to fall sharply further over the upcoming winter. Following the downward trend in the offer levels in Turkey, most of the other prime scrap import markets have also replicated the falling price levels.
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