Imported scrap prices in Turkey showed slight downward movement in recent deals for May shipments, however, trade activities remain to lower side amid softening lira and weakening Chinese finish steel market.
Turkey observed slower start with two cargo bookings came into light for imported scrap in the opening of the week. Price assessment for USA origin HMS 1&2 (80:20) pulled slightly down at USD 351/MT, CFR Turkey in the recent deals confirmed with a marginal decline of about USD 2-3/MT on W-o-W basis.
Turkey scrap trade updates –
1. A Benelux based seller, TSR sold 25,000 MT composite cargo containing 12,500 MT HMS 1&2 (75:25) at USD 342/MT and 12,500 MT of Bonus at USD 362/MT, CFR Turkey. An Iskenderun based steel mill booked this cargo at an average price of USD 352/MT, CFR Turkey which pulled assessment for HMS 1&2 (80:20) edged down.
2. A European supplier sold 40,000 MT cargo comprising 12,000 MT of HMS 1&2 (75:25), 8,000 MT of Shredded, 15,000 MT of P&S and 5,000 MT of Bushelling scrap at an average price of USD 355.5/MT, CFR Turkey. According to sources, the cargo sold loading out of Belgium for May shipment to Marmara based scrap importer in Turkey.
Last week after witnessing four deep-sea bookings, suppliers kept holding fresh offers and remained offering very less. Many of the bids from Turkey based importers were not accepted with expectation for higher prices from suppliers.
Although import activities were lower side in Turkey, domestic supply was available. Few steelmakers preferred local and ship breaking scrap, however, the requirements for May shipments perhaps has not yet fulfilled in Turkey. Mills are likely to book more scrap actively which may lead to observe the slight increase in imported scrap prices again in coming days. On the other hand, buyers believe that prices mostly will remain to low side at least for couple of weeks.
Turkey’s lira weakened 5% in one month’s time – In last one months’ time, Turkish Lira (TRY) depreciated by almost 4.8% against USD. Today USD/TRY rate stood at 4.09 which was trading at around 3.90 on 18th Mar’18. Continuous weakening of lira has constrained trading activities in Turkish Rebar export and scrap markets.
Turkeys’ rebar export offers unchanged amid limited trades – Turkey witnessed sluggish rebar trade activities again this week. Rebar export offers remain at USD 550-560/MT, FoB Turkey. While domestic rebar offers in Turkey assessed at USD 560-580/MT, ex-works.
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