World’s largest scrap importer Turkey has been witnessing series of scrap purchases at increasing prices since last 3-4 weeks. Strengthened prices and demand for finish steel have resulted in increased scrap import activities in Turkey. Since last week importers started booking April shipments and now many of them anticipate that prices would remain strong for further April shipments.
In a recent trade deal concluded, an Iskenderun region based scrap importer booked 50,000 MT Canadian bulk cargo comprising 30,000 MT of HMS 1&2 (90:10), 10,000 MT of Shredded and 10,000 MT of P&S scrap. According to sources, Ekinciler steel mill booked this cargo at an average price of USD 372/MT, CFR Turkey from AIM a leading supplier from Canada for April shipment.
This deal pushed price assessment of USA HMS 1&2 (80:20) further up by USD 2/MT to USD 364/MT, CFR Turkey against last report of USD 362/MT, CFR.
At the beginning of the week, a Baltic seller sold HMS 1&2 (80:20) at USD 362/MT and Bonus at USD 372/MT to an Izmir based steel mill in Turkey. Depreciating Euro against Dollar has resulted in Baltic suppliers to place high offers. In last two weeks’ time, Euro/USD exchange rate dropped from 1.255 to 1.219 today.
Turkeys’ rebar export and billet import offers increased further – Turkeys’ rebar export offers have increased by USD 10/MT on W-o-W basis to USD 585-595/MT, FoB Turkey. Domestic rebar prices in local market in Turkey assessed at USD 590-620/MT, ex-works. Thus, mills are giving preference to domestic sales as prices are comparatively higher.
Recently billet import offers to Turkey also increased to 530-545/MT, CFR Turkey following which suppliers are expecting for further increase in scrap prices by USD 5-10/MT in near terms.
Global scrap markets turned active – Global scrap prices increased sharply over strengthened prices for finish steel. The active comeback of China in finish steel markets after New Year holidays, pushed scrap purchase prices in East Asian counties like Vietnam, South Korea and Taiwan by upto USD 10-15/MT. Japanese domestic and export scrap prices also increased recently upto USD 10-15/MT, FoB Japan. While imported shredded scrap offers to India move up USD 5-10/MT W-o-W on active buying from Bangladesh and Pakistan.
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