Turkey: Imported Scrap Prices Drop to 6-Months Low

SteelMint learned from industry participants that Turkish steel mills have taken a pause from buying activities after observing successive falling in scrap prices since the past couple of weeks.

Limited trade activities have been reported so far this week as buyers eye further correction, on the other hand, suppliers remain expecting prices to have bottomed now. As per prices maintained with SteelMint, imported scrap prices in Turkey have dropped to 6-Months low as prior to this, similar levels were marked in Jan’19.

In a recent deal reported, one of the leading US origin suppliers heard to have sold HMS 1&2 (80:20) at USD 278.5/MT, Shredded at USD 283.5/MT, CFR and Bonus scrap at USD 288.5/MT, CFR Turkey to the Iskenderun based steelmaker.

In a deal reported earlier this week, a Benelux origin supplier sold 20,000 MT of HMS 1&2 (80:20) at USD 279/MT, CFR and 5,000 MT of Bonus scrap at USD 289/MT, CFR Turkey.

After normalizing these deals, SteelMint’s assessment of US origin HMS 1&2 (80:20) scrap has lowered to USD 279-280/MT, CFR Turkey, down by USD 12-13/MT against the last weeks' report.

Prior to this, a US cargo sold comprising 10,000 MT HMS 1&2 (80:20), 18,000 MT of Shredded, 2,500 MT of P&S and 2,500 MT of cut rebar scrap at an average price of USD 289/MT, CFR Turkey. A Russian cargo was reported comprising HMS 1&2 (80:20) at USD 285/MT and Bonus scrap at USD 295/MT, CFR.

As per reports, there was a disparity in bids being presented by steel mills who were eyeing for USD 275-280/MT, CFR levels for HMS 1&2 and suppliers were targeting USD 280-285/MT as tradable price levels. Following weakening prices in the Turkish market, South Asian and East Asian scrap offers have reported to have come under pressure and buyers have turned shaky.

Finish steel prices fall USD 15-20/MT on poor demand - Turkish finish steel prices moved down by USD 15-20/MT against that of reported in the last week on weak demand in the market and rebar reference export prices stand at USD 445-460/MT, FoB Turkey.

Global ferrous scrap prices are falling on account of weaker demand from Turkish mills amid the country’s struggling domestic construction sector as well as increased scrap generation in the US market over the spring months.