Mining News Pro - Turkey-based steel mills have turned silent this week as hardly one or two deals have observed at almost stable prices in the market. Very limited activities in finish steel market and economic instability have pulled down buying interest of ferrous scrap among steelmakers. Market is likely to remain at similar levels as further increase looks limited. Despite weak appetite for upcoming August, the month in which activity usually slows down, few European suppliers remain interested in selling at stable prices for September shipments.
According to SteelMint’s assessment, the recent deal heard has pulled the price assessment for USA origin HMS (80:20) scrap at around USD 338/MT, CFR Turkey, which has remained almost stable as against the report of USD 338-340/MT,CFR towards closing of the last week. Moreover, the premium for HMS 1&2 (80:20) scrap for USA over European origin stands at USD 8-9/MT.
In a deal concluded on Thursday, a steel mill in Marmara region booked a US cargo, comprising 30,000 MT of HMS 1&2 (80:20) at USD 339/MT, 5,000 MT of Shredded at USD 349/MT and 5,000 MT of Bonus at USD 354/MT,CFR Turkey.
However in the closing of last week European origin scrap prices had come down to USD 333-335/MT, CFR levels. A steel mill had booked a European cargo, comprising 30,000 MT of HMS 1&2 (80:20) at USD 328/MT, CFR.
Turkish currency Lira remains depreciated. USD/TRY rate stands at 4.86 today which was trading at around 4.81 a week ago. Imports turned costly on weak TRY and participants remained apprehensive about less stability of currency.
Rebar prices weakened further on dull demand – Buying interest for Turkish finish steel has remained very low since past couple of weeks and thus prices aren’t recovering in Turkey. Sellers are offering at stable prices however, buyers remain negotiating further. Rebar export prices assessed in the range of USD 535-540/MT, FoB Turkey and domestic rebar assessed at 545-555/MT, ex-works. Similarly wire rod export offers out of Turkey stand at USD 575-580/MT, FoB stable on W-o-W.
