DAILY STEEL SCRAP: Turkish mills continue July bookings; prices remain strong

The Turkish steel producers continued their deep-sea scrap purchases at slightly higher prices for July shipments, market sources told Fastmarkets on Thursday May 20.

A steel mill in the Iskenderun region booked a Baltic Sea cargo at $507.50 per tonne cfr on HMS 1&2 (80:20) basis - the cargo composition was not clear.

This compared with a previous bookings done on Tuesday at $506.50-507 per tonne cfr for Baltic Sea-origin HMS 1&2 (80:20).

This took the scrap indices slightly higher in the daily calculations. Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey came to $506.53 per tonne on Thursday, up by $0.32 per tonne day on day.

And the corresponding daily index for steel scrap, HMS 1&2 (80:20 mix), United States origin, cfr Turkey was $511.11 per tonne on May 20, up by $0.33 per tonne.

The premium for US material over European scrap was $4.58 per tonne on May 20, compared with $4.57 per tonne on May 19.

The increase in the prices was driven by a change in the Chinese tax policy that has sharply increased steel demand in the region.

On April 28, China’s ministry of finance announced that, in order to better guarantee the supply of steel resources and promote the high-quality development of the domestic steel industry, the import tariff for certain steel products originating from outside the Association of South East Asian Nations (Asean), including square billet, was to be reduced from 2% to zero from May 1.

What to read next
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.