Turkey: Imported Scrap Prices Again Climb in Latest Deals

Imported scrap prices to Turkey have again moved up this week, in the recent deep-sea cargo bookings concluded, as the market continues to witness fluctuating trend for over 3 weeks now. In the present market, the tight availability at both North American and European yards as well as slow to average demand by steelmakers are balancing each other and keeping the prices range bound consistently.

-- Among the latest deals, a USA based recycler has sold a 30,000 MT bulk cargo to a steelmaker based in Mediterranean region, comprising of 20,000 MT of HMS 1&2 (95:5) at USD 254.5/MT, 7,000 MT Shredded at USD 257.5/MT and 3,000 MT bonus grade (P&S) at USD 262.5/MT for later June shipment. As per trade sources, this price structure puts the HMS 1&2 (80:20) price from USA at around USD 250/MT CFR Turkey.

-- In another latest contract, a Belgium recycler has sold a 35,000 MT cargo to a different mill in the Mediterranean region, consisting of 22,500 MT of HMS 1&2 (75:25) and12,500 MT of P&S/HMS 1 combination,at an average price of USD 247.5/MT CFR Turkey. Market participants estimate that HMS 1&2 (75:25) in this booking comes at a price of USD 242-242.5/MT CFR, putting HMS 1&2 (80:20) price at around USD 243-244/MT CFR from the Benelux region of Europe. This booking too is expected for 2nd half June shipment.

Prior to this, last week, a Belgium supplier sold a 32,000 MT mixed cargo to a Marmara region-based steelmaker, comprising of 20,000 MT of HMS 1&2 (80:20) at USD 238/MT CFR and 6,000 MT each of Shredded and P&S scrap at USD 243/MTand USD 248/MT CFR respectively.

On normalizing the latest bookings, SteelMint's assessment for USA origin HMS 1&2 (80:20) to Turkey stands at USD 250/MT CFR Turkey, up by USD 6/MT against last week's closing. The assessment has moved up and down again in the range of USD 245-254/MT for the 5th successive time in last two weeks. While the assessment for European origin stands at USD 243.5/MT CFR Turkey.

Industry sources expect the prices to remain more or less stable in this range for the near term, while in the medium term, prices are expected to move up, as the demand is anticipated to move faster, compared to improvement in availability.