Mining News Pro - Turkey based scrap importers have continued to buy scrap in bulk cargoes for October shipments after taking a pause towards end of last week.
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According to Mining News Pro -Turkey based scrap importers have continued to buy scrap in bulk cargoes for October shipments after taking a pause towards end of last week. The country observed 3-4 fresh deep sea cargo bookings at range bound prices recently. However, depreciated currency and slow-recovery in finish steel exports from the country continue to remain a matter of concern for most of the buyers.

Importers remain hesitant to pay above USD 320/MT,CFR levels for HMS 1&2 (80:20) but prices are less likely to come down sharply anymore and Turkish local scrap prices rose further to stand in line with imported scrap now.

According to SteelMint’s assessment, the recent deals heard have kept price assessment for USA origin HMS (80:20) scrap stable at around USD 319-320/MT, CFR Turkey. However, as against the report last week the assessment has increased by USD 3-4/MT from USD 315-317/MT levels. Premium of USA HMS 1&2 (80:20) over European origin stands at USD 9-10/MT.

Two deals have confirmed as the importers booked more materials for October shipments. Two more trades heard to have sold at range bound prices in the market however confirmation on these deals has not received till the publication of this article.

Notably, the price gap between Shredded and HMS 1&2 (80:20) has widened again to the levels of USD 8-10/MT in the recent deals.

Trade Wise -

1. In the recent deal concluded, a steel producer based in the Marmara region booked a USA cargo, containing total 40,000 MT ferrous scrap comprising 20,000 MT HMS 1&2 (80:20) at USD 319/MT, 15,000 MT Shredded at USD 324/MT and 5,000 MT of Bonus at USD 329/MT, CFR.

2. A northern European recycler sold 40,000 MT cargo to Marmara based leading importer comprising 15,000 MT HMS 1&2 (80:20) at USD 318/MT, 20,000 MT Shredded at USD 328/MT, CFR and 5,000 MT of Bonus at USD 330/MT, CFR Turkey.

3. Another steel maker based in the Samsun region booked a USA cargo, comprising 13,000 MT of HMS 1&2 (80:20), 15,000 MT of Shredded, 3000 MT Bonus and 1000 MT Busheling at an average price of USD 330.5/MT,CFR.

4. In the deal confirmed in the beginning of this week, a cargo sold comprising 30,000 MT of Shredded, 15,000 MT HMS 1&2 (90:10) and 5,000 MT of P&S at an average price of USD 327/MT,CFR. The HMS 1&2 (80:20) price from this cargo was gauged at around USD 321-322/MT, CFR.

Lira remains depreciated affecting demand for finish steel - Turkish currency lira remained weak against USD. Today USD/TRY is trading at 6.40 levels, however, participants expect that exports may rise in upcoming days on weak Lira.

Rebar export prices move up on slight improvement in the demand – After hitting very low levels rebar export prices have turned up this week in Turkey and assessed in the range of USD 510-515/MT, FoB Turkey, up USD 10/MT W-o-W. Domestic rebar demand improved slightly with limited movement. Few mills continued to resist scrap purchasing so as to put downward pressure on prices, because the demand for finished steel products was soft in the export markets.

 


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