Turkey: Imported Scrap Prices Up in Recent Deal from US

SteelMint learned from industry participants that imported scrap prices in Turkey have turned up in recent trades reported after observing the downtrend for almost earlier 3 weeks. Prices edged up USD 4-5/MT W-o-W in recent deals, however, participants may wait for more deals in order to judge clear price direction. Demand for both finished steel and billet remains sluggish in the country which kept sentiments bearish for scrap imports.

In a recent deal confirmed, Samsun region based steel mill booked a total 30,000 MT cargo from US recycler comprising 18,000 MT HMS 1&2 (80:20) at USD 312.5/MT, 10,000 MT of Shredded at USD 317.5/MT and 2,000 MT of Bonus scrap at USD 322.5/MT, CFR. This cargo puts US origin HMS 1&2 (80:20) equivalent at around USD 312-313/MT, CFR.

Another cargo was booked from a leading German supplier by Iskenderun based steel mill comprising 17,500 MT HMS 1&2 (75:25) and 7,500 MT of Bonus at USD 308/MT, CFR Turkey.

According to SteelMint’s assessment, US origin HMS 1&2 (80:20) scrap has moved up to USD 312-313/MT, CFR Turkey up USD 4-5/MT against last weeks’ report of USD 306-308/MT, CFR. While assessment of Europe origin stands at around USD 306-308/MT, CFR. A premium of US material over Northern European scrap stands at around USD 5/MT.

Notably, Turkish steelmakers seemed to have very limited scrap inventories in hand. As per data maintained with SteelMint, the country has procured very limited scrap (below than average buying) for ‘end April and May’ working which brings a possibility of restocking ahead of Ramadan holidays and prices to climb further USD 5-10/MT in the near terms, however, aggressive demand could be witnessed provided finish steel sales picks up again in the country. Thus, a sharp hike is less expected in imported scrap purchase price in the short term.

Turkey rebar market sentiments remained bearish as export offers fell down further on weak demand to USD 480-485/MT, FoB. Moreover, CIS rebar export offers were reported in the range of USD 465-470/MT, FoB Black Sea port depending on destination.