Turkey: Scrap Importers Book 3 Cargoes; Prices Inch Up

Scrap importers in Turkey booked 3 more bulk scrap cargoes in last couple of days.

Despite recent softening of global scrap prices after rebounding during the beginning of the week, Turkish scrap prices remain supported on positive outlook. Importers keep procuring material for November deliveries mostly from Europe and Baltic origin as offers from USA suppliers remain limited amid tight supply again this week. Despite this, finish steel demand remains slow amid few sales reported with appreciating Lira.

In the recent deals, a steel mill in the Iskenderun region booked a European cargo, comprising 30,000 MT of HMS 1&2 (80:20) at USD 324/MT, CFR.

A steel mill in the Izmir region booked a Baltic Sea cargo for November shipment, comprising of 18,500 MT of HMS 1& 2 (80:20) at USD 327.50/MT and 3,500 MT of Bonus at USD 337.50/MT, CFR.

A steel mill in the Marmara region booked a Baltic Sea cargo, comprising 22,500 MT of HMS 1&2 (80:20) at USD 328/MT, 1,500 MT of Shredded at USD 333/MT, 4,000 MT of Bonus at USD 338/MT and 8,000 MT of Busheling at USD 338/MT, CFR.

According to SteelMint’s price assessment, USA origin HMS (80:20) scrap stands at around USD 332/MT, CFR Turkey, marginally up by USD 2-3/MT W-o-W. While HMS 1&2 (80:20) for European origin heard at USD 324/MT, CFR.

Slightly stronger prices were heard for Baltic region scrap as compared with European scrap. This keeps the premium for US material over Northern European scrap at USD 9-10/MT.

Turkish domestic scrap prices stable despite improved lira - Amid appreciation of lira against USD, few major steelmakers had reduced domestic scrap prices however, prices still remain strong and remain in line with imported scrap in Turkish domestic scrap market.

Turkish lira appreciated 8% in last two weeks’ time - Exchange rate USD/TRY stands at 5.64 today as against 6.15 on 6th October, witnessing an appreciation of around 8% in last two weeks’ period.

Turkish rebar market remains slow - Despite steel mills in Turkey observed slow demand, few trades for rebar concluded at corrected prices. Prices heard stable in the range of USD 495-500/MT, FoB Turkey. Turkish steel mills lowered domestic rebar offers for local customers to TRY 3,380-3,504 (USD 580-601) ex-works including 18% VAT. In recent deal, a steel mill sold around 50,000 MT of rebar at TRY 2,865/MT, equivalent to USD 495/MT, ex-works excluding 18% VAT.

source: SteelMint

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