Imported scrap prices remain high on bullish rebar export offers in Turkey, while USA based scrap suppliers turned little resistant over lacking clarity on section 232.
World’s largest scrap importer Turkey has been witnessing robust prices for rebar exports following which scrap import offers kept climbing up since last one months’ time. Global sentiments for scrap remained strong over high demand from major importing countries. Steel mills in Turkey are now looking for further April shipment cargoes as finish steel prices are still strong in Turkey.
In a recent trade deal concluded, an Izmir region based scrap importer booked a Russian bulk cargo comprising 23,000 MT of HMS 1&2 (80:20) at USD 371/MT, 4,000 MT of Bonus at USD 381/MT and 1,000 MT of Rails at USD 386/MT on CFR Izmir basis. According to sources, St. Petersburg based exporter sold this cargo for full April shipment.
This deal pushed price assessment of USA origin HMS 1&2 (80:20) further up by USD 7-8/MT on W-o-W to USD 371-372/MT, CFR Turkey against the last report of USD 364/MT, CFR.
Towards closing of the last week, a 30,000 MT European cargo sold comprising HMS 1&2 (75:25) at USD 360/MT, 5,000 MT Shredded at USD 372/MT and 10,000 MT Bonus at USD 377/MT, CFR Turkey to an Iskenderun based steel mill in Turkey.
Turkeys’ rebar export offers increase further – Turkey rebar export offers have increased by USD 10-15/MT on W-o-W basis to USD 595-610/MT, FoB Turkey. Domestic rebar prices in the local market in Turkey assessed at USD 600-620/MT, ex-works. Thus, rebar export offers are now in line with domestic rebar prices in Turkey.
Following which domestic scrap prices in Turkey also increased by around TRY 20-40/MT (USD 5-10) W-o-W.
Turkey steel mills actively exporting steel ahead of US section 232 imposition – Another influencing factor is recently announced 25% tariffs on imports of steel product by US government. It is to be noted that Turkey stood as 6th largest steel exporter to USA during Jan-Sept’17. After the announcement on the imposition of tariffs on steel imports, Turkey steel mills were actively shipping the consignments ahead of imposition.
Major sellers from USA have turned little resistant to offer fresh bids for scrap and are waiting for a clear market direction on the impact of US 232 imposition.
Looking at the current scenario it can be inferred that prices are likely to remain on the higher side in the near term.
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