After witnessing few trade deals at stable prices during last week, Turkey-based steel mills have turned silent this week, awaiting the demand for finish steel to improve which remains still sluggish in both local and export markets. This has put few sellers under pressure and offers for imported scrap have edged down marginally on W-o-W basis in absence of notable buying activities in Turkey.
Last week, Turkey based importers initiated August shipment bookings however, hardly few trades were reported in the market afterwards. Many of steel mills remain waiting for downward corrections as buying interest stood at levels down side by USD 3-5/MT against last weeks’ report.
According to SteelMint’s price assessment, USA origin HMS 1&2 (80:20) scrap assessed at around USD 350-352/MT, as against last weeks’ price levels of USD 353-354/MT, CFR Turkey. Notably, the premium for HMS 1&2 (80:20) scrap for USA over European origin stood at USD 5-7/MT.
Participants were hopeful for strengthening of Turkish Lira after elections and corrections in the domestic prices but it did not happen in the market and rebar prices remain low in the local market. Today USD/TRY rate stood almost firm at 4.60 which was trading at around 4.68 a week ago. Thus, market direction remains unclear again this week.
Finish long export prices remained stable in recent deals – Most of the steel mills remain optimistic about improvement of finish steel demand in upcoming days. Few deals concluded this week to South East Asian importers at around USD 545/MT, FoB however, bookings are expected to increase further in upcoming week from USA importers. Thus, Rebar export prices assessed stable in the range of USD 545-555/MT, FoB Turkey and domestic rebar assessed at 550-560/MT, ex-works narrowing from USD 350-370/MT last week.
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