Imported scrap prices in Turkey have increased by $15-20/t w-o-w in recently concluded deals. Market participants believe that prices may get a clear direction once China comes back to restock cargo after the CNY holidays.
SteelMint’s assessment for US origin HMS 1&2 (80:20) now stands at $418/t CFR Turkey.
- In a recently concluded deal, around 25,000 t of USA origin HMS 1&2 (80:20) has been sold to West Marmara based steel mill for early Mar’21 shipment. The deal has been concluded at $418/t CFR Turkey basis. The prices have increased by $8 against the last deal.
- Another deal was concluded from the same origin for HMS 1&2 (95:5) at $413/t CFR Turkey basis.
Market sentiments-
- Hike in Turkish domestic scrap: Following the global scrap price hike, domestic scrap prices have also risen by TRY 50-230/t ($7-33). Scrap demand is likely to remain on the stronger side due to healthy finished steel demand.
- Finished steel demand may boost bulk bookings: Supportive finished steel demand and increasing steel prices likely to boost bulk scrap bookings for Mar’21 shipments. Steelmakers believe that there is room for more scrap deals to fulfill the end users demand.
- Spot iron ore prices surge after CNY: Spot iron ore Fe 62% fines price has shot up by $5.5 and closed at $174.45/t CFR China today. Chinese iron ore and steel futures market resumed after the week-long China New Year (CNY) holiday. Dalian’s most-traded May’21 iron ore futures climbed by RMB 60 to close at RMB 1,131.5/t.
Outlook– Suppliers are trying to push scrap prices further, whereas Turkey’s buyers are resisting to pay high offers. Disparity in bids and offers kept market activities slow.
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