Turkey: Steel Mills Resume Scrap Bookings; Market Awaits Clear Direction
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After observing a slowdown in purchases during national parliamentary elections last week, Turkey-based steel mills have picked up scrap imports recently at almost stable prices. However, market direction remains unclear and participants are waiting for pick up in country's finish steel demand which is still sluggish in both local and export markets.
In a recent deal concluded yesterday, a leading Canadian supplier AIM sold 50,000 MT cargo to a Samsun region based steelmaker comprising 30,000 MT of Shredded and 20,000 MT of HMS 1&2 (90:10) at an average price of USD 368/MT, CFR Turkey.
In another deal reported, Habas steel producer booked a 40,000 MT cargo from USA based supplier comprising 38,000 MT HMS 1&2 (80:20) and 2,000 MT of P&S scrap at an average price of USD 354/MT, CFR Turkey.
According to SteelMint's assessment, these recent deals concluded at almost stable levels in the market have maintained the price assessment for USA origin HMS (80:20) scrap at around USD 354-356/MT, CFR Turkey. In line with it, the premium for HMS 1&2 (80:20) scrap for USA over European origin stood at USD 8-10/MT.
Many of the steel mills are now expected to start booking August shipments in upcoming weeks. Also, the demand for high-grade scrap remained decent with widened differentials against low-grade scrap since past few weeks in Turkey.
Turkey imported scrap trade-wise updates -
Earlier to recent deals, three more deals have confirmed in the market out of which a deal was concluded on late Tuesday and other two were concluded during June 21-22 which confirmed this week.
1. A steel producer in the Marmara region booked a Baltic Sea cargo, comprising 25,000 MT of HMS 1&2 (80:20) at USD 353/MT and 5,000 MT of bonus at USD 368/MT, CFR on Tuesday.
2. UK origin supplier, Norton sold 35,000 MT cargo for end July shipment comprising 17,500 MT HMS 1&2 (80:20) at USD 345/MT and 17,500 MT Bonus at USD 365/MT, CFR Turkey to Iskenderun based steelmaker.
3. Another steel mill in the same region booked a Baltic Sea (St. Petersburg) cargo, comprising 25,000 MT of HMS 1&2 (80:20) at USD 352/MT, 3,000 MT of Bonus at USD 367/MT and 2,000 MT of rail at USD 367/MT, CFR.
Most of the participants remain optimistic about the stability of Turkish currency Lira after elections. TRY slightly appreciated by 3% in last one weeks' time after hitting a record low a week ago. Today USD/TRY rate stood at 4.63 which was trading at around 4.77 a week ago.
Finish steel market awaits impact of elections - Most of the steel mills remain waiting for improvement of finish steel market before purchasing scrap, however, activities in the rebar market remained slow awaiting the impact of elections this week. Rebar export prices assessed stable in the range of USD 545-550/MT, FoB Turkey and domestic rebar assessed at 550-570/MT, ex-works. While billet export prices remained at around USD 535-540/MT, FoB Turkey.
