Import cargo delays pushes Turkish domestic scrap above deepsea prices

  • Wednesday, February 13, 2019

  • Keywords:Turkish domestic scrap, deepsea price
[Fellow]Import cargo delays pushes Turkish domestic scrap above deepsea prices

[] Domestic prices in Turkey surpassed deep-sea import prices Tuesday as Turkish steel producer try to bridge the gap between the arrival of their deepsea cargoes and current spot scrap needs.

Three mills across Turkey were reported to buy material at $335/mt for HMS 1/2 (80:20) material, while one Izmir-based steelmaker increased buying prices to $340/mt as of Tuesday.

Meanwhile, deepsea import prices remained at $330/mt CFR from the end of last week, according to sources. Usually, domestic prices stand below imported scrap prices.

Amid stronger activity in the domestic and export finished steel market, some Turkish steelmakers were heard to have procured scrap locally to cover their production until import cargoes arrived.

"[Buying] interest is increasing. I believe they have a tonnage gap between the time of deepsea cargoes and present stocks," one Turkish domestic scrap source told S&P Global Platts.

Several market players have voiced the concern that some recyclers who concluded deals at relatively cheap prices well below $300/mt CFR in the second half of January and sold with limited scrap in stock would struggle to secure sufficient scrap flows into the docks at workable prices on time, which has already led so some shipment delays.

Some shipments have been delayed from February to March but Turkish mills have accepted requests for extensions as the deals have happened at significantly lower prices compared to current levels.

"The cheap sales will not be on time, that's why there will be a gap," one Turkish agent told Platts.

As the majority of deepsea cargoes are expected to arrive in March and April and mills still face low inventory levels, local scrap suppliers "will push the market" until then, the domestic source told Platts.

(S&P Global Platts)

  • [Editor:王可]

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