This week, Turkish steel mills kept themselves away from deep-sea scrap market. Nevertheless, suppliers are still hesitant on a sharp decline in imported scrap offers considering tighter availability.
SteelMint’s assessment for USA origin HMS 1&2 (80:20) stands a $298/t CFR Turkey, slightly down by $3/t w-o-w. Before this, SteelMint has reported last Turkish deal, in which a Mediterranean region based steel mill has booked a Baltic origin bulk scrap cargo, consisting of HMS 1&2 (80:20) at $300/t CFR and bonus (P&S) at $ 310/t CFR Turkey basis.
Key highlights –
- It is expected by the Turkish mills that prices may fall further in the coming days.
- Many steel manufacturers have sufficient scrap inventory with their mills, and this could be the reason they evade making any fresh bookings.
- While global suppliers likely to refuse to sell material at lower levels and may keep the offer price firm at $300/t level.
- Due to weak finished steel demand in domestic and overseas markets.
- Exchange rate-Turkish lira continued to depreciate and currently trading at 7.55 against 1 dollar, as compared to 7.45 lira recorded a week ago.
Interestingly, Turkish scrap imports hit five years high by 53% on a monthly basis in Jul ’20. Imports stood at 2.35 mn t during Jul ’20 as against 1.53 mn t in Jun ’20 as per customs data maintained with SteelMint.
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