WEEKLY SCRAP WRAP: Turkish bookings drag global prices up

Global scrap prices have increased over the past week, as the mills in Turkey returned to the deep-sea scrap markets for December bookings.

Turkey has booked ten deep-sea cargoes since Tuesday November 14, totaling more than 300,000 tonnes.
Meanwhile, import scrap prices in India and Taiwan have also increased with steady demand for the material.
Turkey imports
Steel mills in Turkey were expected to book deep-sea cargoes for December, but have been quiet for a while. However, they returned to the market on Tuesday because of increasing domestic rebar sales, sources told Metal Bulletin.
“It seems that domestic [rebar] sales have picked up and mills need to cover their December-shipment scrap requirements,” a trading source said.
A steel producer in Northern Turkey booked a US cargo, comprising 15,000 tonnes of HMS 1&2 (90:10), 18,000 tonnes of shredded and 2,000 tonnes of plate and structural (P&S) at an average price of $312 per tonne cfr on Tuesday.
After that cargo was booked, three more deals from various sources were heard on Wednesday.
A steel mill in the Iskenderun region booked a Canadian cargo, comprising 30,000 tonnes of shredded, 15,000 tonnes of HMS 1&2 (90:10) and 5,000 tonnes of P&S scrap at an average price of $320 per tonne cfr.
Another steel mill in the same region booked a European cargo, comprising 20,000 tonnes of HMS 1&2 (75:25) and 20,000 tonnes of bonus at an average price of $309 per tonne cfr.
And a steel mill in the Marmara region booked a Baltic Sea cargo, comprising 17,000 tonnes of HMS 1&2 (80:20) at $312 per tonne and 13,000 tonnes of bonus at $322 per tonne cfr.
Three cargoes were sold on November 16.
A steel mill in the Iskenderun region booked a US cargo, comprising 11,000 tonnes of HMS 1&2 (80:20) at $314 per tonne, 12,000 tonnes of shredded at $319 per tonne and 2,000 tonnes of bonus at $324 per tonne cfr.
A steel mill in the Marmara region booked a Baltic Sea cargo, comprising 10,000 tonnes of HMS 1&2 (80:20) at $314 per tonne, 13,000 tonnes of shredded at $319 per tonne and 2,000 tonnes of bonus at $324 per tonne cfr.
The same mill also booked a US cargo at similar prices for HMS 1&2 (80:20), shredded and bonus. However, the cargo breakdown was not clear.
Moreover, on Friday, another wave of buying was heard.
A steel producer in the Iskenderun region booked a Canadian cargo, comprising 35,000 tonnes of shredded, 10,000 tonnes of HMS 1&2 (90:10) and 5,000 tonnes of P&S at an average price of $320 per tonne cfr.
Another steel mill in the same region booked a US cargo, comprising HMS 1&2 (90:10) at $317 per tonne and shredded at $319 per tonne cfr. The cargo breakdown was not clear at the time of publication.
A third deal was heard after the indices were published, which was sold to a steel mill in the Marmara region from a US supplier. The cargo comprised HMS 1&2 (80:20) at $313 per tonne, shredded at $318 and P&S at $323 per tonne cfr but, once again, the breakdown was not clear.

Cem Turken

cturken@fastmarkets.com

Published

Cem Turken

November 17, 2017

17:17 GMT

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