Turkey-based steel mills observed a fresh deal from European supplier at lowered prices yesterday. The poor demand for finish steel in the country continued to remain a major concern for most of the steelmaker resulting in weakened appetite for September shipments scrap bookings. Turkey based importer has booked this deal after everyone remaining silent in the market for last 4-5 days since 27th August amid less clarity about inflation forecast. On the other hand, Lira hit record low today at 5.08 against USD.
In a deal concluded yesterday, a steel mill in Marmara region booked a European cargo, comprising 20,000 MT of HMS 1&2 (75:25), 12,500 MT of Bonus and 2,500 MT of New cuttings at an average price of USD 328.5/MT, CFR Turkey.
According to SteelMint’s assessment, this deal has pulled the price assessment down for USA origin HMS (80:20) scrap at around USD 330/MT, CFR Turkey, which has come down by USD 5/MT as against the report of USD 335/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. European origin HMS 1&2 (80:20) scrap prices have come down to USD 325-327/MT, CFR levels.
In the mid of last week, USA origin cargo was booked by a mill in Marmara, comprising 10,000 MT HMS 1&2 (80:20) at USD 335/MT, 15,000 MT of Shredded at USD 345/MT and 5,000 MT of P&S at USD 350/MT, CFR. Following fall in global scrap prices, Turkish domestic auto bundle and ship breaking scrap prices heard to have come down slightly on W-o-W basis.
However, USA suppliers remain timid to offer much on lower prices. With announcement of European safeguard measures it is expected that Europe buyers will look to purchase finish products from Turkey in upcoming days.
Turkish Lira depreciates sharply in a weeks’ time - Turkish currency Lira has hit record low today depreciating by about 5% in last one week. USD/TRY rate stands at 5.08 today which was trading at around 4.82 a week ago. Imports have turned costly on weak TRY and participants turned apprehensive about economic instability and successive depreciation of currency.
