Offers for HMS fell by upto USD 15-18/MT in a day’s time.
Scrap market at Turkey witnessed a sudden fall in Scrap offers on Wednesday morning. HMS 80:20 offers here touched USD 205-207/MT, CFR Turkey with a fall of USD 15-18/MT in a day’s time. Scrap was offered at USD 215-220/MT CFR Turkey just a day ago.
Increase in scrap supply in Europe and US along with low buying interest in Taiwan and Korea has compelled scrap suppliers to drop offers sharply. Cheaper steel (billet) export offers from China also stood among one of the major reasons for fall in scrap prices.
It is noticed that steel (billet) import in Turkey from China has gradually increased in last 2-3 months. Monthly steel import, which was around 130,000 MT in May has risen to around 530,000MT by July’15.
| Monthly Steel Imports in Turkey from China | ||
| Month | Qty in MT | M-o-M |
| May’15 | 132,000 | + 48% |
| June’15 | 365,700 | + 177% |
| July’15 | 536,800 | + 47% |
Sourced
Lucrative export offers by Chinese suppliers have always succeeded in attracting the millers world wide. For instance, currently billet offers from China are at USD 295/MT CFR Turkey, whereas CIS nations continue to offer at USD 310-315/MT CFR Turkey.
It is found that looking at the cost-effectiveness, Turkish mills are more inclined towards rolling billet rather than using ferrous scrap to prepare finished longs.
Global Scrap Offers as on 10 Sep’15
| Delivery | Grades | Offers in USD/MT | W-o-W |
| CNF Mumbai, India | HMS(80:20),Europe | $220 | -5 |
| Shredded,Europe | $235-240 | -7 | |
| Shredded,US | $240 | -5 | |
| CNF Taiwan | HMS(80:20),US | $172 | 0 |
| CNF Turkey | HMS(80:20),US | $205 | – 13 |
| FOB Rotterdam, Europe | HMS(80:20),Europe | $180 | – 30 |
| FOB US East Coast | Shredded,US East Coast | $195 | – 25 |
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