Turkish imported scrap prices have increased significantly over a week in recent deep-sea scrap cargo bookings being made. The scrap supply tightness over strong demand has continued to keep prices on higher side. SteelMint’s assessment for USA origin HMS 1&2 (80:20) is in the range of $299/t CFR Turkey, up by $12/t on a w-o-w basis. Prices have hit a seven-months high as similar price levels were seen in Jan’20.
Recent Turkish deals – 
Reasons behind hike in prices –
- Turkish buyers considered construction activities would resume in Sept, hence, demand for finished steel will increase in the coming days.
- The Turkish lira has depreciated rapidly since last week, recently reaching its weakest level ever against the dollar. Currently, 1 dollar is trading equal to 7.40 Turkish lira as compared to last week when it was recorded at 7.32 on 30th Aug’20.
- Supply tightness in scrap continues to remain a major factor.
- Iron ore prices in global market have remained on higher side. Chinese spot iron ore fines (Fe 62%) prices increased by around $3/t yesterday to $128.05/t CFR against at $125.45/t CFR China a day before.
- On the other hand, the spread between imported scrap prices and finished long export offers has narrowed now.
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