DAILY STEEL SCRAP: Prices poised for further increase

The Turkish deep-sea scrap import market was quiet on Monday April 26, with sources reporting there were still suppliers with cargoes available for June shipments.

The most recent deep-sea transactions were heard on Wednesday April 21, when two Baltic Sea suppliers secured bookings at $426-427 per tonne cfr on a heavy melting scrap 1&2 (80:20) basis, while a European supplier sold a mixed cargo at $429 per tonne cfr.

At least two Baltic Sea suppliers were in the market offering cargoes at $430 per tonne cfr on HMS 1&2 (80:20) basis, but mills were unwilling to pay higher than $425 per tonne cfr, according to sources.

“I expect scrap prices to increase further. Flat steel prices in Turkey have increased recently, which could trigger an increase in scrap prices too. The market is expecting the next booking to confirm the increase,” a trading source said.

As a result of fresh offers and bids gathered on Monday, the daily scrap indices inched lower.

Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was calculated at $425.47 per tonne on Monday, down by $0.82 per tonne compared with Friday’s index.

The daily index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey was calculated at $431.44 per tonne, also down by $0.82 per tonne day on day, leaving the for US material over European scrap at $5.97 per tonne.

Hot-rolled coil and cold-rolled coil prices in Turkey increased last week in line with strong demand.

Fastmarkets’ weekly price assessment for steel HRC, domestic, exw Turkey was $1,030-1,050 per tonne on April 22, up from $1,020-1,030 per tonne on April 16.

“The market is pretty quiet at the moment. Iron ore prices have also increased sharply. Scrap suppliers in the United States are offering $435 per tonne cfr for HMS 1&2 (80:20),” a second Turkish trader said.

“But the domestic long steel market in Turkey is still very weak. People in the local market want to see the lira/dollar parity settle down. The Turkish lira was trading at $1 to 8.45 lira [on Monday] morning; it is now trading at $1 to 8.30 lira,” the second trader said.

Fastmarkets’ daily index for 62% Fe fines, cfr Qingdao was $193.58 per tonne on Monday April 26, up by $7.33 per tonne day on day from $186.25 per tonne.

The Turkish lira was trading at $1 to 8.378 lira on Monday, compared with $1 to 8.076 lira on April 19, according to Oanda.com.