Turkey’s imported Scrap offers which were on a continuous rise seem to gain some stability in April.
After hitting rock bottom prices of USD 346/MT in February this year, prices raced to settle at USD 382-385/MT within a period of one and half month. Experts believe that current prices are likely to hold in the market as traders cannot afford more upside in prices of Scrap due to uncertain demand of finish products.
Outlook in the steel industry witnessed some changes as elections caused temporary blips. Ongoing elections in Turkey have slowed down construction activities and this has led to a poor demand environment in the Turkish Re-bar Market.
Export activities have slowed down due to appreciating Turkish Lira; steel mills are not finding it feasible to export finish products currently. Turkey, which imports Scrap and export its Re-bar products, has been caught in a difficult situation owing to this changing dynamics of the currency.
A Trend of Turkey Import Prices & Turkish Lira is as Shown under
Indian Scenario
Imported Scrap offers to India have steadily risen in past couple of days owing to increased demand in Indian market. Steel mills, which were in dire need of Scrap preferred to book containers from Middle East countries. Currently, offers from Middle East countries for HMS 1&2 are hovering in the range of USD 382-385/MT CFR Mumbai.
Last week an importer settled a deal of 200 MT of HMS-1 from Oman at around USD 392/MT CIF Mumbai. Another leading trader based in Dubai has shipped a container carrying 100 MT of HMS 1&2 at USD 386/MT CIF Mumbai.
On the other hand, traders at Chennai are getting offers of USD 390/MT CFR from Dubai and USD 380/MT from Africa for HMS-1.
Recently, Chennai domestic Scrap market has reflected a quick rise. Domestic prices shot up to the levels INR 27,500-28,000/MT from INR 25,500/MT (basic) owing to shortage of Scrap in domestic market and rise in demand seen in finished market.
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