Turkish Steel Mills Resume Scrap Bookings After a Week's Pause

SteelMint learned from industry participants that Turkish imported scrap market has resumed scrap booking at corrected prices after almost a week's pause. Weak finish steel sales continue to put pressure on sentiments despite rise in domestic scrap prices in the central and Midwest region in US.

In a recent deal concluded, a Turkish steel manufacturer brought an ex-US cargo comprising 20,000 MT of Shredded and 20,000 MT of HMS 1&2 (90:10) at an average price of USD 294/MT, CFR Turkey.

As per SteelMint’s methodology, an assessment of US-origin HMS 1&2 (80:20) scrap inched down to USD 288-289/MT, CFR Turkey against the last week report of USD 290/MT, CFR. While assessment of European origin HMS 1&2 (80:20) stands at USD 283-284/MT, CFR Turkey.

Escalating trade tensions between China and US resulted in pressuring finish steel prices globally. While South Asian imported scrap prices which are already hovering at around 2 years low levels likely show marginal correction further.

It is being expected that holiday mood on upcoming Eid likely to keep activities very slow in Turkey, Pakistan, Bangladesh and Indonesia. Most of the steelmakers would have to resume remaining scrap purchases amid limited stocks after holidays at supported global prices. However, Turkey’s rebar export offers remained flat in the range USD 450-460/MT, FoB Turkey.