After remaining silent over national holidays in the beginning of the week, Importers in Turkey have turned active for ferrous scrap bookings. Prices have moved down in the recent deals concluded in the market for May shipments.
Turkey observed several cargo bookings for imported scrap in last couple of days as importers returned into the market. Prices moved down for all major origins like UK, Europe and Baltic except USA amid several deals concluded for May shipments. While Turkish market was closed while the country celebrated National Sovereignty Day and Children’s Day in the beginning of the week on 23rd Apr’18.
Price assessment for Europe origin HMS 1&2 (80:20) moved down at USD 345/MT, CFR Turkey. while price assessment for USA origin HMS 1&2 (80:20) remained almost stable at USD 351-352/MT, CFR on W-o-W basis.
Offers from USA based sellers remained higher, thus remained less competitive than other origins. A single booking heard to have concluded in the market for USA origin scrap at edged up prices.
Turkey imported scrap trade updates –
1. UK based seller sold 40,000 MT of mix cargo to an Iskenderun based steelmaker. Cargo booked for May shipment containing 30,000 MT HMS 1&2(80:20) at USD 348/MT, 5,000 MT of Shredded at USD 353/MT and 5,000 MT of bonus at USD 358/MT, CFR Iskenderun.
2. A leading supplier from USA origin sold composite cargo yesterday comprising HMS 1&2 (80:20) at USD 352.5/MT, Shredded at USD 357.5/MT and Bonus at USD 364.5/MT on CFR Turkey basis respectively. However, quantities were not confirmed till the publication of this article.
3. The same supplier sold UK origin 45,000 MT of HMS 1&2 (80:20) at USD 340/MT, CFR. According to sources, ICDAS a prime importer based in Marmara region in Turkey booked this deal to be shipped in two vessels for March shipments thus normalizing it to USD 345/MT, CFR.
4. ICDAS heard to have booked around 10,000 MT of HMS 1&2(80:20) from a Baltic origin supplier IVR.
5. Another Benelux origin cargo sold to an Iskenderun based steel mill containing 40,000 MT scrap comprising of 20,000 MT HMS 1&2 (75:25), 5,000 MT HMS 1 scrap, 5,000 MT Bonus and remaining 10,000 MT forging scrap at an average price of USD 343/MT, CFR Turkey.
Many of the participants now anticipate that prices are likely to remain to the downside in May’18. Also, if USA suppliers resume scrap exports to Turkey then a situation of abundant supply in the market may further put pressure on the prices in the near terms. Domestic ship breaking prices slightly edged up this week, however, local scrap purchase prices for major steel mills remained stable in Turkey.
Turkish Lira (TRY) depreciated by almost 1.5% against USD in a weeks’ time. Today USD/TRY rate stood at 4.08 which was trading at around 4.02 on 19th Apr’18.
Turkeys’ rebar export offers fell over low demand – Turkey witnessed sluggish rebar trade activities again this week. Rebar export offers assessed at USD 545-555/MT, FoB Turkey. While domestic rebar offers in Turkey assessed at USD 560-570/MT, ex-works. Prices have moved down by USD 5-10/MT on W-o-W basis.
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