Turkey: Imported Scrap Market remains Active in Recent Deal

SteelMint learned from market participants that after remaining stable for around a week, Turkish imported scrap prices have inched up marginally in a recent deep-sea bulk booking being concluded yesterday. After observing a sharp rebound in prices during the first 3 weeks of October'19 amid numerous bookings witnessed, the prices have mostly remained stable in the last week.

In latest deal reported, a Mediterranean region-based steelmaker concluded a bulk vessel yesterday from a Netherlands based scrap yard, booking 25,000 MT of mixed cargo comprising of 22,500 MT of HMS 1&2 (80:20) at USD 248/MT CFR, and 2,500 MT of bonus at USD 258/MT CFR Turkey.

Prior to this, during the closing of last week a USA based yard had sold a bulk cargo of 40,000 MT to a West Marmara, comprising of 20,000 MT HMS 1&2 (90:10) and 20,000 MT of Shredded at an average price of USD 256/MT CFR, putting HMS 1&2 80:20 at USD 252-253/MT.

As per SteelMint's methodology, assessment of US-origin HMS 1&2 (80:20) scrap has now escalated to USD 254/MT, CFR Turkey, inching up by USD 1/MT, as against USD 253/MT at the closing of last week. The assessment of European origin HMS 1&2 (80:20) stands at around USD 248/MT, CFR Turkey.

After reaching 3 year low levels by Sep'19 end, the average Price for Turkish scrap imports has now increased by over USD 28/MT over the course of Oct'19, while the reversal of Tariff decision by US govt on Turkish steel exports will keep the prices supported in the short term.

Turkish Rebar export prices currently stand at USD 410-420/MT FoB, slightly improving against last week, however, exports have still remained sluggish.