Turkey: Imported Scrap Prices Edge Up in Recent Deals
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SteelMint learned in recent conversation with market participants that Turkey-based steel mills have continued paying high for imported scrap in order to keep activities running. Expectations from the US scrap suppliers have gone upward now. However, steel mills are trying to maintain prices as low as possible due to non-recovery of finished steel demand yet in both the domestic and exports market.
In the recent trade, Izmir region based steelmaker booked a Baltic origin cargo comprising 20,000 MT HMS 1&2 (80:20) at USD 287/MT, 7,000 MT of Shredded at USD 292/MT and remaining 5,000 MT Bonus at an average price of USD 297/MT, CFR Turkey.
According to SteelMint's price assessment, US origin HMS (80:20) scrap climbed up to USD 290-292/MT, CFR Turkey as against USD 287-288/MT, CFR in the last report. While HMS 1&2 (80:20) of Europe origin stand at around USD 283-284/MT, CFR. A premium for US material over Northern European scrap stands at around USD 7-8/MT.
Sellers indicative offers cited for premium scrap in the range of USD 295-300/MT, CFR but buying interest stand at around USD 290-292/MT, CFR.
Local scrap prices lift on higher import prices - Several steel mills in Turkey those are still in operation have lifted domestic scrap buying prices by TRY 15-40/MT (USD 3-8) against last week. Increasing Auto bundle and ship breaking scrap prices reflected strengthening imported scrap costs.
Turkey rebar export offers remained to lower side amid very weak recovery. In limited trades heard prices fell in the range USD 435-440/MT, FoB Turkey. Many steelmakers tried to raise finish long prices but hardly any trade reported at higher levels yet.
Impacted by US taxes and fresh EU safeguard regulations some steelmakers have cut their capacities in Jan'19 however, diverging fortunes between longs and flats producers have consequences in the raw materials market, which is likely to lead to increasing divergence of Turkish long and flats steelmaker's performance.
Turkey crude steel output marginally down in 2018 - According to Turkish Steel Producer Association, Turkey produced 37.31 MnT of crude steel in 2018, down 1% against 37.52 MnT in 2017.
