Turkey: Imported Scrap Prices Fall to 3 Year Low in Recent Deals

Turkish imported scrap prices have moved down sharply again this week after yesterday's deep-sea cargo bookings were confirmed at prices USD 6-7/MT lower than the previous bookings, SteelMint learned from market participants. With the contentious fall in Turkish Rebar export prices on persisting low demand in domestic and overseas markets, a further drop in scrap prices was being anticipated, while market awaits for the impact of this downturn to reflect in the Asian markets in the coming days.

In recent deals reported, 2 prominent steelmakers from the Mediterranean region booked a bulk vessel each comprising of 20,000 MT and 17,000 MT of HMS 1&2 (80:20) respectively, at USD 228/MT CFR Turkey. The cargoes were booked from a UK based global supplier and the deal was confirmed yesterday, for October'19 shipment.

Prior to this, last week a prominent supplier from Baltic region sold a bulk cargo to an Izmir region-based steelmaker comprising 25,000 MT of HMS 1&2 (80:20) at USD 240/MT, CFR Turkey.

As per SteelMint's methodology, an assessment of US-origin HMS 1&2 (80:20) scrap has moved down to USD 234/MT, CFR Turkey. Prices have moved down by around USD 10 /MT against last week's report, while in comparison to the last booking during the closing of last week, the price drop is around USD 6-7/MT. While assessment of European origin HMS 1&2 (80:20) currently stands at around USD 228-229/MT, CFR Turkey

As per data maintained by SteelMint, Turkish imported scrap prices have reached 3 year low levels now as prior to this, the assessment of HMS 1&2 (80:20) from the USA had plunged below USD 235/MT CFR level in October 2016.

Turkish rebar export prices are now down to USD 410-415/MT range, FoB as demand has remained very weak in most regions except South East Asia, due to safeguarding quotas in Europe and import duties in USA.