Turkey: Imported scrap Prices Fall by USD 10/MT in Recent Deal

HMS 1&2 import prices have hit 3 months low with recent deal from US.

SteelMint learned from market participants that, imported scrap prices to Turkey have dropped by a significantly in a fresh deep sea cargo booking concluded from USA, while the sharp downturn is now expected to reflect in global offers to major import markets worldwide.

In the latest deal confirmed yesterday, an eastern Marmara region based steelmaker booked a deep sea bulk vessel of 30,000 MT of HMS 1&2 (90:10) from a USA recycling yard at USD 275/MT CFR Turkey.

On normalizing the latest deal, the assessment for USA origin HMS 1&2 (80:20) has now dropped to USD 272/MT CFR Turkey, down by over USD 8-10/MT against last week's report. The assessment from UK/Europe stands at USD 267-268/MT CFR.

Prior to this, the last confirmed deal was concluded earlier in the last week, when the UK division of a global yard had sold a bulk cargo HMS 1&2 (80:20) at USD 277/MT CFR. Notably, with this booking USA has returned to Turkey market after several weeks, however no deep sea bulk booking of shredded has yet being observed this year as yet.

On an overall basis, Jan'20 remained slow for Turkish scrap import market with only few bulk bookings being concluded on wide gap between suppliers' offers and bids from buyers. According to sources, in view of the falling finished steel export prices in Turkey, buyers are unlikely to accept higher offers in the short term, and a further slide in prices in fresh bookings in the coming days cannot be ruled out.