Activity in the Turkish import
scrap market has been on the strong side over the past two weeks. Due to limited inventories, Turkish steelmakers have accelerated their import
scrap purchases in the last two weeks, while some mills have not concluded enough
scrap deals and so this week new bookings will also likely be concluded.
Over the past week, many
scrap bookings have been concluded from the Baltic region to
Turkey, with one transaction concluded at the average price level of $370/mt CFR for 28,000 mt of HMS I/II 80:20
scrap and 2,000 mt of bonus grade
scrap. In the meantime, an ex-
UK scrap deal has been concluded at an average of $373/mt CFR for 18,000 mt of HMS I/II 80:20 and 8,000 mt of shredded
scrap. Only two ex-
US scrap transactions have been concluded in the past week amid the lack of
scrap offers from the country. This week’s
scrap bookings are expected to be mainly from the
US and short sea. The latest ex-
US deal in
Turkey was concluded at the average price level of $379/mt CFR for 13,000 mt of HMS I/II 90:10, 15,000 mt of HMS I/II 95:05 and 12,000 mt of P&S
scrap. The volume of ex-
US scrap offers is expected to increase this week, while Turkish mills are ready to buy HMS I/II 80:20
scrap from the
US at $370-375/mt CFR. Meanwhile, the latest ex-
Europe scrap deal to
Turkey was for 22,000 mt of HMS I/II 75:25
scrap at $361/mt CFR, 3,000 mt of HMS I
scrap at $384/mt CFR, and a mix of 7,500 mt of P&S
scrap and 7,500 mt of HMS I
scrap at the average price level of $389/mt CFR. According to this transaction, ex-
Europe HMS I/II 80:20
scrap prices have indicated an increase of $5/mt as compared to last week.
Turkish producers are expected to complete their
scrap bookings and increase their inventory levels. Meanwhile, due to the lack of demand in the finished steel market, Turkish mills may slow down their import
scrap purchases after they have completed most of their purchases. A slowdown in
scrap demand in April may lead to increase on the supply side, resulting in softer
scrap prices.