Downtrend in import scrap prices for Turkey boosts purchase activity
Friday, 10 May 2013 17:21:31 (GMT+3)
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Istanbul
Import scrap prices in the Turkish domestic market have continued to decline. After concluding some deals in the previous weeks, Turkish steelmakers, who had been postponing their scrap purchases from the US with the expectation of further price cuts, have accelerated their buying activities in the past week in line with the further reduction in the USscrap prices. While the most recent ex-US HMS I/II 80:20 scrap deal had been concluded at $367/mt CFR, today, May 10 a new ex-US scrap deal has been heard at the average price of $370/mt CFR, composed of HMS I/II 90:10, shredded scrap and bonus grade scrap. The scrap deal at these price levels for such good quality materials indicates that USscrap prices are still moving on a downward trend, while European scrap offers to Turkey have indicated a softening as well. Accordingly, an ex-continental Europe transaction for HMS I/II 80:20 scrap has been concluded at $362/mt CFR this week, following an ex-Spain HMS I/II 80:20 scrap booking at $365/mt CFR in the previous week. Prices of finished steel materials have also been on a soft trend in the European markets, in addition to the scrap market, while no upward price movements for scrap are expected in the coming days.
On the other hand, Romania is offering A3 scrap to Turkey at $365-360/mt CFR, after an ex-Black Sea scrap deal was concluded in Turkey this week at the price level of $363/mt CFR.
Overall, almost all import scrap prices for Turkey have been following a soft trend, Turkish buyers will likely continue concluding scrap deals in the coming period. Meanwhile, market representatives believe that the downward trend in scrap prices will likely not allow upward movement in finished steel prices, while scrap offer prices are expected to soften further.
Weekly price movements of different steel products in major markets can be viewed comparatively in the SteelOrbis Historical Steel Prices section. Market trends can thus be seen more clearly, while desired charts can be created and used in reports or presentations.
