Turkish
mills are still quite to book new orders for HMS scrap, as mills are
anticipating demand for the finished products to increase. Market participants
expect that new bookings are expected to be closed next week.
Some
cargoes were being heard quoted at US$ 438-440/MT CFR Turkey last week for HMS
I&II (80:20). The same grade of HMS scrap was bought at US$ 430/MT from
Europe this week. However, HMS (70:30) was traded at US$ 412/MT CFR Turkey,
from Europe i.e. less than US$ 5-8/MT from USA. Demand in Europe for HMS scrap
is still weak which forced sellers to export their material at lower price.
According
to a source “CIS countries, especially Russia, to reduce their exports due to
the strong demand in domestic regions for HMS scraps Some A3 grade Black Sea
region scrap was booked at US$ 410-415/MT CFR Turkey. The appreciating ruble
against the US dollar is another factor keeping Russian scrap sellers away from
offering to Turkey.”
Turkish buyers do not want to make long term contract. They prefer to book
orders under immediate deliveries due to the high volatility in the market and
the uncertainties in the demand for steel Billet and Re bar.
“Offers for HMS are already at their minimum
level and market participants expect prices to remain stable at the current
level. Moreover, imports from CIS regions will soon be restricted due to the
winter weather and mills are about to procure the stock for domestic use.” a
sources said.
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