Turkey: Imported Scrap Prices Fall to Five-Months Low in Recent Deal

Weak finished steel market sentiments has lowered bids for scrap purchase. Against last week's US booking, prices have come down by around USD 25.

A fresh deep-sea cargo booking to Turkey has pulled down imported scrap prices sharply to below five-month low levels and cautioned the markets worldwide overnight. The said booking will have global ramifications and is expected to cause a downslide in offers to all major markets, while buyers all around will now wait for correct offers before contracting major quantities.

In the latest booking, a Canada based recycler has sold a huge 50,000 MT bulk cargo to a western Marmara based steelmaker. The mixed cargo comprised of 18,000 MT of HMS 1&2 (95:5), 20,000 MT of Shredded and 12,000 MT of P&S (Bonus grade) at an average price of USD 255/MT CFR Turkey. Based on the above booking, the price for HMS 1&2 (80:20) of US origin is calculated at USD 249/MT CFR, while it is an April shipment booking.

Notably, just one week ago, HMS 1&2 (80:20) from a US supplier was sold at USD 275/MT CFR, thus witnessing a humongous drop of USD 26/MT between two consecutive bookings from North American origins.

SteelMint's assessment for HMS 1&2 (80:20) from USA stands at USD 249/MT CFR Turkey, down by over USD 20/MT against last week's report, and falling below 5-month levels, as prior to this the price had dropped below USD 250/MT in mid-Oct '19.

Prior to yesterday, many Baltic suppliers were reported to be offering HMS 1&2 (80:20), however the sudden plunge in prices will put pressure on sellers, who are in the market to sell April shipment cargoes, and hence market expects the prices to move down further.