After witnessing a sharp depreciation of Turkish currency Lira against USD and US government’s imposition of double import tariffs on steel imports, Turkey based scrap prices were expected to come down sharply by most of the industry participants. As per latest reports, imported scrap prices in Turkey have moved to by USD 10-12/MT further.
According to SteelMint’s assessment, the recent deal heard have pulled price assessment for USA origin HMS (80:20) scrap at around USD 306-307/MT, CFR Turkey, which has come down by USD 13-15/MT on W-o-W as against last report of USD 320/MT, CFR. Premium of USA HMS 1&2 (80:20) over European origin stands at USD 5-6/MT.
In recent deal concluded, an Iskenderun region based steel mill booked a Russian cargo, comprising 24,000 MT of HMS 1&2 (80:20) at USD 302/MT, 5,000 MT of Bonus at USD 315/MT and 1,000 MT of Rail at USD 320/MT, CFR Turkey.
“Scrap prices were expected to come down sharply however might not move down further as scrap requirement is increasing in Turkey. Current prices of USD 300-305/MT could have also come to the bottom levels. Many of the steelmakers who have sold for export orders, are looking for imported scrap which may support prices and scrap bookings further in the country.” shared a participant.
The Turkish currency Lira had been depreciating against US dollars especially since the month of Mar’18 amid its increasing inflation which has surpassed 15% – a 15 year high and expanding current deficit that has widened to more than 6% of the country’s national income. However, in last two days it recovered back slightly to 6.15 level today which had gone above 7 levels against USD a week ago.
Finish steel exports and prices remain bearish – Turkey based steel mills observed few export sales for finish steel this week. Following a major devaluation of currency, the exports from Turkey have turned attractive to Egypt, Morocco and Southeast countries like Vietnam as it fetches more foreign currency whereas scrap imports became more costly.
Rebar export prices hit very low levels on currency panic and assessed in the range of USD 500-510/MT, FoB Turkey, less by USD 25-30/MT W-o-W.
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