Economic jitters in Turkey
The plunging Turkish lira and import tariffs by the US have caused Turkish import prices for ferrous scrap to drop, with scrap traders seeking arbitrage opportunities in Asia from the US East Coast in a surprising twist of events.
“To hear the US East Coast offering scrap to Asia is phenomenal, as the East Coast usually sends a large quantity of scrap eastwards to Turkey,” a Vietnamese trader said.
There is at least a $30-50 per tonne west-east arbitrage window open for traders to take advantage of, especially with export prices from the US east coast dipping by close to $30 per tonne on an fob basis on August 17.
Europe has also been affected, with at least 10 offers for large quantities of Europe-origin scrap to major import market...