Turkey: Imported Scrap Prices Rebound in Latest Deals

After reports of tightening supply of scrap at global yards due to slow inflow and low collection since last week, it was being widely anticipated that scrap prices will rebound soon. In line with the expectations, imported scrap prices to Turkey have shot up by over USD 25/MT CFR in a couple of deep-sea cargo bookings confirmed yesterday, while offers have witnessed a considerable upturn.

Among latest deals, at closing of last week, a bulk cargo from a Belgium recycler was sold to a Mediterranean region based steel mill, comprising of 40,000 MT of composite cargo at USD 235/MT for 10,000 MT HMS 1&2(75:25), USD 243/MT for 20,000 MT Shredded and USD 248/MT for P&S and USD 253/MT for 6000 MT Busheling, CFR Turkey. This puts the price of HMS 1&2(80:20) at USD 238/MT CFR Turkey from Baltic origin.

In another recent booking confirmed today, a US recycler has sold 30,000 MT cargo to a Western Marmara steelmaker at USD 245/MT for 15,000 MT HMS 1&2 (90:10), USD 248/MT for 12,000 MT Shredded and USD 253/MT for 3,000 MT P&S (bonus grade), putting HMS 1&2(80:20) at USD 242/MT CFR Turkey from USA.

After normalizing the bookings, assessment for HMS 1&2(80:20) from USA stands at USD 240-242/MT CFR Turkey, up by USD 25/MT against last week, while assessment from Europe stands at USD 235/MT CFR. Last week's Russian booking of small batch (3000-4000 MT) of HMS 1&2(80:20) was not included in the assessment due to small quantity.

On the other hand, due to very high covid-19 spread in Turkey, several steelmakers have cut their production to lower levels, indicating that scrap bookings in the country may not be very active in the coming weeks.