Turkey : Imported Scrap Prices Stable; Limited Trade Deals Reported
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Imported ferrous scrap prices in Turkey have maintained stability this week. Price assessment for US origin HMS (80:20) remains at USD 314/MT, CFR Turkey.
In a recent trade deal heard, a Turkey based steel maker bought 30,000 MT HMS (80:20) Baltic Sea cargo at USD 314/MT and 5,000 MT Bonus at around USD 324/MT, CFR.
As per market participants, Turkey based steel mills have already booked cargoes for their requirement in the month of December and they will prefer to wait before booking further. Also steel mills seem to wait for clear direction in rebar export market for which they have resisted from making aggressive scrap purchases.
However, trade sources are of the view that scrap prices will remain on the higher side and are likely to increase further in the next month owing to arriving winters that may tighten material availability.
US scrap prices are unlikely to move down in December. Nucor's Louisiana DRI facility has stopped production in early November by taking an unplanned outage. The DRI plant is likely to remain under maintenance for nearly 4-6 weeks. DRI can help reduce the need for prime scrap and pig iron in Nucor's electric-arc furnaces. But, as market participants look to replace lost DRI output, this could push scrap prices in next month.
All these factors have collectively strengthened sentiments for US scrap prices in December.
Turkey crude steel output up 10% M-o-M in Oct'17 - According to data released by World Steel Association, crude steel production in Turkey was recorded at 3.31 MnT in Oct'17 compared to 3 MnT in Sept'17. Country has produced 31 MnT crude steel in CY17 (till Oct) compared to 27.41 MnT in the same time frame last year.
During first nine months of CY17, Turkey has imported 14.90 MnT of ferrous scrap, up 16% Y-o-Y against 12.90 MnT ferrous scrap imports during the same period of CY16 (Jan-Sept'16).Thus, increased scrap consumption by Turkey-based EAF firms has resulted in increased crude steel production.
