Imported scrap demand picked in recent trades from USA up as importers have started bookings for July shipments; Price gap between HMS 1&2 and Shredded widened upto USD 13-15/MT on strong demand for high-grade scrap.
Turkish deep-sea imports prices have turned upward on positive sentiments and expectations about imposition of USA import tariffs on steel from Canada, the EU and Mexico from June 1st. Finish steel demand is likely to improve again from Turkey into the US markets.
Around 3-4 fresh trades concluded for imported scrap at improved prices as soon as US suppliers turned active in the Turkish market.
According to SteelMint’s assessment, recent deals concluded pushed the price assessment for USA origin HMS (80:20) scrap at around USD 343-344/MT, CFR Turkey up by USD 5-6/MT against last report towards last week close at USD 338/MT. The premium for HMS scrap from USA over northern European stood at USD 8-9/MT.
It was expected that scrap demand in Turkey would pick up after US imposed tariffs of 25% on steel imports and 10% on Aluminium imports on its exempted allies Canada, EU and Mexico under section 232. As these suppliers also must have to face same tariffs, Turkey steel exports to USA are likely to increase from Turkey.
Demand for Shredded strong amid tightened supply – The differentials for Shredded scrap over HMS 1&2 widened upto USD 13-15/MT in the recent two deals reported from US which usually stands not more than USD 5/MT.
The demand for Shredded scrap raised sharply in USA’s domestic market following rising domestic steel output. On the other hand, Turkish steel mills have already booked a lot of domestic scrap which should be mixed with high premium scrap like shredded for processing. This situation is resulting in the demand for Shredded scrap to surge in the global markets and buyers are ready to pay high spread for Shredded over HMS amid tightening supply. Steel mills in Turkey are desperate to book high-grade scrap like Shredded, Bonus and P&S scrap.
Turkey imported scrap trade-wise updates –
1.One of the leading scrap supplier SIMS from USA sold a 30,000 MT scrap cargo comprising 12,000-14,000 MT HMS 1&2 (80:20) at USD 340/MT, 16,000 MT of Shredded and 0-2,000 MT of P&S at USD 355/MT, CFR. A steel mill in the Iskenderun region Koc Metalurji has booked this cargo due for delivery in the first half of July.
2. The same steelmaker in Turkey booked another early July shipment cargo. In this deal, a leading supplier Stena based in Baltic region sold a cargo comprising 3,500 MT HMS 1&2 (80:20) at USD 340/MT, 23,000 MT Shredded and 1,500 MT Bonus at USD 355/MT, CFR Turkey.
3. Marmara region based steelmaker Kroman Steel booked a 40,000 MT US cargo, comprising HMS 1&2 (80:20) at USD 342/MT and Shredded at USD 355/MT CFR Turkey. According to a source report, this cargo is scheduled for June shipment, however, the breakdown volumes of this cargo were not clear at the time of publication.
4. A European cargo, comprising 17,500 MT HMS 1&2 (75:25), 12,500 MT of a mixture of P&S and HMS 1, and 5,000 MT of Shredded, sold to a North Turkey based importer at an average price of USD 334/MT, CFR Turkey.
Lira remains range bound in a weeks’ time – Turkish currency Lira remains almost firm this week against USD. Today USD/TRY rate stood at 4.60 which was trading at around 4.50 a week ago. Range bound and Stabilizing Lira supported Turkish buyers to book more volumes of scrap.
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