Turkey: Imported Scrap Prices Drop in Recent Deals

SteelMint learned from industry participants that imported scrap prices in Turkey have shown further correction in recent deals concluded. A steel mill booked a May shipment cargo from Benelux origin at lowered prices indicating price outlook to turn bearish amid slow demand in the finish steel market. Participants are likely to wait for more bookings to predict a clear market direction in the near future.

In a recent deal confirmed, Marmara region based steel mill booked a cargo from Amsterdam comprising 22,000-23,000 MT HMS 1&2 (80:20) at USD 308/MT and 5,000 MT of Bonus at USD 318/MT, CFR. As per sources, this cargo is scheduled for the first half of May shipment delivery and puts Baltic origin HMS 1&2 (80:20) equivalent at around USD 313-314/MT, CFR.

Another cargo has been booked from a leading supplier in UK by Izmir based steel mill comprising 14,000 MT HMS 1&2 (80:20) at USD 315/MT and 4,000 MT Shredded at USD 322/MT, CFR Turkey.

According to SteelMint's assessment, US origin HMS 1&2 (80:20) scrap has moved down to USD 316-318/MT, CFR Turkey against last weeks' report of USD 321-322/MT, CFR. While assessment of Europe origin stands at around USD 314-315/MT, CFR. A premium of US material over Northern European scrap stands at around USD 4-5/MT.

Participants were targeting lower levels amid political instability and volatile currency Lira against USD last week. Turkish currency Lira has continued fluctuation over the past couple of weeks' against USD. TRY was hovering in the range low 5.3 to high 5.6 levels against USD in last one weeks' time and stands at 5.5 levels today.

Turkey's rebar market sentiments remained flat with a bearish outlook following global sentiments. Rebar export offers as reported last were flat in the range USD 490-500/MT, FoB Turkey. Moreover, CIS rebar export offers showed correction of USD 10/MT against last week and stand in the range of USD 470-480/MT, FoB Black Sea port depending on destination.