After witnessing rebounded prices in the deals confirmed last week, Turkey based scrap importers have started to buy scrap actively observing fresh deals due for shipments in end-Sept and October. The country had observed short period of inactivity in end August for 8-10 days on an account of holidays which was shattered with buyers reverting back into the market in last couple of days. However, depreciated currency and non-recovery in finish steel exports from the country remained a matter of concern for most of the buyers.
Three fresh trades concluded in the market have pushed prices further up by USD 3-4/MT. In the recent deal concluded in the beginning of the week, a same mill in the northern Turkey booked a US cargo, comprising 25,000 MT of HMS 1&2 (80:20) at USD 317/MT and 15,000 Shredded at USD 322/MT, CFR.
Another steel maker based in the Iskenderun region booked a European cargo, comprising 5,000 MT of HMS 1 and 22,500 MT of Shredded at an average price of USD 320/MT,CFR.
According to SteelMint’s assessment, the recent deals heard have pulled the price assessment for USA origin HMS (80:20) scrap at around USD 315-317/MT, CFR Turkey, up by USD 3-4/MT as against last report of USD 312-313/MT in the closing last week. Premium of USA HMS 1&2 (80:20) over European origin stands at USD 8-9/MT.
A Baltic Sea cargo has also booked on Monday, comprising HMS 1&2 (80:20) at USD 317.5-318/MT and Bonus at USD 327.5-328/MT, CFR.
Notably, the price gap between Shredded and HMS 1&2 (80:20) has fallen back to usual levels of USD 5/MT in the recent US deal.
It is expected that Turkish steel mills are likely to book more scrap as several cargoes have been delayed on massive currency depreciation in August. However, prices may not move up sharply and expected to remain range bound till Turkish steel mill would resume finish steel exports actively again.
Lira remains depreciated affecting local steel trades – Turkish currency lira remained weak against USD. Today USD/TRY is trading stable at 6.60 levels impacting buying interest for steelmaker in domestic markets.
Most of the participants believe that very few deals have concluded for Sept-Oct shipments in Turkey which would compel buyers to buy materials in upcoming days at corrected prices. Despite the weakness in Turkey’s currency, the country’s mills need to buy scrap because they desperately need to sell finish steel. However, Turkish finish steel has remained weak in terms of export prices and demand remains poor.
Rebar export prices hit very low levels amid currency panic and tariff regulation, and remained down in the range of USD 500-510/MT, FoB Turkey since last 3 weeks over very limited trades.
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