Turkey, the world’s largest ferrous scrap importer recorded a 13% increase in imports to 2.14 mn t in Sep’20 as against 1.89 mn t in Aug’20, as per data maintained with SteelMint. Mills remained active in restocking scrap cargoes ahead winters which boosted imports.
Similarly, on a yearly basis, scrap imports rose 26% from 1.7 mn t during the same month in the previous year.
USA, one of the leading ferrous scrap suppliers, imported 0.49 mn t in Sep’20, up by 32% as against 0.37 mn t in Aug’20. SteelMint’s assessment of USA origin HMS 1&2 (80:20) stood at $285/t CFR Turkey in Aug’20 against $265/t CFR Turkey in Jul’20. However, imports from Netherland and Russia stood at 0.28 mn t and 0.24 mn t in Sep’20.
US hold low stocks, replenishment pushes up booking prices – US have been low on stocks and, with signs of an uptick, those stocks are being replenished with higher transaction prices resulting which increased price of raw materials and positive for those who have sufficient stocks for September.
Finished steel demand improved on high scrap prices – The flats market is active as citing firm Turkish finished steel demand due to Turkish mills consistently buying at higher prices during this time. Also, in Q3 CY’20, the domestic market consumption had improved with the downstream industries recovering with the easing lockdown norms at the beginning of Jun’20.
Turkish Lira hits all-time low against $ – Turkish Lira depreciated to 8.5 against $ in Nov’20, hitting an all-time low amid geopolitical tensions. However, in last couple of days, it has recovered to 7.8 levels.
Outlook – Turkish scrap imports are expected to remain supported considering tighter supplies ahead.
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