After witnessing sharp fall in prices in last 2 weeks, Turkey based scrap importers remained silent for last few days with very limited deals heard in the market. However, prices have turned up after witnessing successive fall since last two months period. The recent deals confirmed have pushed prices up by USD 10-12/MT as against the report of USD 300/MT, CFR. According to reports, around 55,000 MT of scrap was bought from Europe and Benelux origin although no trade was reported for United States origin scrap.
Turkey scrap market observed short period of inactivity in last 8-10 days. No recovery in finish steel demand and continuously fluctuating currency kept importers away from purchases during EID holidays. While the market was closed on account of national holiday for the country’s Victory day on Thursday.
In recent deals concluded on Wednesday, a steel mill in Izmir region booked a German origin cargo, comprising 25,000 MT of HMS 1&2 (75:25) at USD 303/MT and 5,000 MT of Bonus at USD 313/MT, CFR Turkey.
Another Benelux cargo comprising 18,000 MT of HMS 1&2 (75:25) and 7,000 MT of P&S was booked at an average of USD 314/MT, CFR Turkey.
According to SteelMint’s assessment, the recent deals heard have pulled the price assessment for USA origin HMS (80:20) scrap at around USD 312-313/MT, CFR Turkey, up by USD 6-7/MT as against last report of USD 306-307/MT on 17th Aug. Premium of USA HMS 1&2 (80:20) over European origin stands at USD 8-10/MT.
Lira depreciates again after recovery – Turkish currency lira had hit record low at 7 against USD on 13th Aug’18. Then, it recovered back to 6.01 levels a week ago resulting in improving demand. However, today USD/TRY is trading again at 6.58 levels impacting the buying interest for scrap in the country.
Most of the participants believe that very few deals have concluded till now for September shipments in Turkey which would compel buyers to buy materials in upcoming days at corrected prices. However, Southeast Asia, a key export destination for Turkish finish steel has remained weak in terms of import prices and demand remains poor in these markets for building and construction industry.
The doubling of US import tariffs on Turkish steel to 50% has also influenced sentiments amid tense political relations between the two countries.
Finish steel exports and prices remain bearish – Turkey based steel mills observed bearish sentiments with no recovery in finish steel demand. Rebar export prices hit very low levels amid currency panic and tariff regulation, and were plunged down in the range of USD 500-510/MT, FoB Turkey two weeks ago.
Leave a Reply