Turkey: Imported Scrap Prices Rise in Recent Deals
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SteelMint learned in recent conversation with market participants that Turkey-based steel mills have remained bullish for imported scrap bookings amid limited inventories. The recent spree of trades exhibited urgency of scrap material for several steel mills in the country. Prices have increased by USD 10-12/MT against last week in recent deals reported on supply shortage. Importers seem ready to pay little high for prompt deliveries rather later-dated March shipments.
In the recent trade, a US supplier sold HMS 1&2 (80:20) at around USD 304/MT, CFR Turkey.
While on last Friday, Iskenderun region based steelmaker booked a cargo from Benelux-origin recycler comprising 20,000 MT Shredded, 6,000 MT mixed HMS 1 and P&S, 4,000 MT Busheling and 10,000 MT HMS (75:25) total 40,000 MT at an average price of USD 304.5/MT, CFR. This cargo is scheduled for February shipment.
US cargo sold comprising HMS 1&2 (95:5) at USD 303/MT and P&S scrap at USD 310/MT, CFR Turkey.
The same steelmaker bought another March shipment cargo from a German supplier comprising 18,000 MT of HMS 1&2 (80:20) at USD 297/MT, 4,000 MT of Shredded at USD 302.5/MT and 3,000 MT Bonus at USD 307.5/MT, CFR.
In line with this, UK origin cargo heard booked comprising of 25,000 MT HMS 1&2 (80:20) at USD 295/MT, CFR for February shipment.
Several other cargoes also heard to have booked in the range of equivalent HMS 1&2 (80:20) at USD 296-298/MT, CFR Turkey, however, details for these bookings are yet to receive till the publication of this article.
According to SteelMint's price assessment, US origin HMS (80:20) scrap lifted to USD 302-304/MT, CFR Turkey as against USD 290-292/MT, CFR in the last weeks' report. While HMS 1&2 (80:20) of Europe origin stands at around USD 292-294/MT, CFR. A premium for US material over Northern European scrap stands at around USD 7-9/MT.
Turkey rebar export offers inch up - Following higher scrap costing, Turkish steel mills attempted to raise rebar offers in both export and domestic markets. Offers stand in the range USD 445-460/MT, FoB, however, buyers expectations stand still around USD 435/MT, FoB Turkey.
According to World Steel Association, Turkey produced 37.31 MnT of crude steel in 2018, down 1% against 37.52 MnT in 2017.
