Imported scrap prices in Turkey continued to dip further for another week. SteelMint’s assessment for USA origin HMS 1&2 (80:20) now stands at $438/t CFR Turkey, witnessing a considerable drop of over $40/t as compared to mid of last week. Prices have come down to over one month low as price level of $429/t CFR was seen in week ending 21 Dec’20.
Turkish buyers are trying continuously to reduce the imported scrap prices. Few deals have concluded recently from Baltic region at a lower level.
Traders are showing an urgency to sell their cargo at the earliest before prices slide further. In the current negative market sentiments, buyers are waiting for further price corrections.
Recent confirmed deals-
Factors governing decline in Turkey’s imported scrap price–
Lira appreciates against $ – Turkish currency – Lira has appreciated against $ and is trading at 7.39 presently compared with 7.66 levels a month ago.
Domestic scrap prices fall by $7/t- Domestic scrap prices in Turkey fell by $7/t on a weekly basis. Currently, scrap set at TRY 3,240/t ($437) level, which was recorded at around TRY 3,290/t ($444) level a week ago, sources have reported to SteelMint.
Spot iron ore prices dip on weaker demand– Spot price for iron ore Fe 62% fines yesterday inched-down by $1.35/t d-o-d to settle at $168.9/t CFR China. Prices have retreated from $173.6/t CFR China early this week. Sentiment for iron ore demand was weak as several steel mills in Hebei province were heard bringing forward blast furnaces maintenance due to the COVID-19 pandemic in the region.
Outlook – Few sources expect that the prices may come down by $5-10/t this week, considering that the workable price should be around $430-435/t levels. However, some sources have mixed opinions on the future trend.
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