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Turkish avg scrap imports prices drop in July

Turkish avg scrap imports prices drop in July

ANKARA: The July average benchmark prices for Turkish imports of HMS #1&2 80:20 gained 0.8%, just under $3 a ton, month-on-month (m-o-m).

According to TSI, daily index was range-bound be-tween $371-381 a ton CFR Iskenderun port for the duration of July, with a significant jump in pricing seen towards the end of the month.

The last week of July saw volatility return to the Turkish ferrous scrap import market, with TSI’s daily benchmark scrap price for Turkish imports of HMS #1&2 80:20 jumping by US$5/t on the last day to finish the month at US$381/t. Prior to this, the index had gradually ticked up from US$371/t to US$376/t over the previous three weeks.

With Ramadan falling in July one might have expected scrap prices to decrease, as construction activity traditionally reduces during this period. However, the market dynamics were in fact dominated by a lack of scrap supply, with a shortage of available cargoes from Europe causing prices to rise.

Towards the end of the month Turkish mills had hiked steel rebar prices by US$10/t, although it is unclear if this was a response to higher scrap costs or a pre-emptive move.

With US domestic shredded prices only slightly below the level on offer in the Turkish market, it made sense for US exporters to hold on to cargoes and sell them inland where possible, which further reduced the supply to Turkey.