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Turkey ferrous scrap imports soften as short sea affects sentiment

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Turkey ferrous scrap imports soften as short sea affects sentiment

Turkey ferrous scrap imports soften as short sea affects sentiment

Release time:2017-04-26 Number of views:155

Ferrous scrap import prices to Turkey took a small step down on Monday,  as sentiment over the weekend softened based on two small Black Sea  bookings done last week.

No new sales were heard on the deepsea, and signs of emergent demand  from Turkish steelmakers for heftier cargoes were yet to show  themselves.

S&P Global Platts assessed HMS I/II 80:20 at $259/mt CFR Turkey on Monday, down $3/mt from Friday.

Black Sea origin material of A3 quality tends to run at  approximately a $10/mt discount to US or Baltic origin HMS I/II 80:20  cargoes, but this number can change depending on the market conditions.

These two cargoes were booked at $250/mt CFR Iskenderun, spreading sentiment that 80:20 sales would come in under $260/mt.

This was expected, but a European seller, balancing his estimation  of a price around $260/mt against that of a buyer, who saw prices  workable in a $255-$260/mt range. Neither party seemed in a hurry to  take to market.

"I am not expecting any scrap purchasing from Turkey until the end  of the week at the earliest," said a second scrap merchant in Europe.  "They've bought a lot of scrap and now they need to check the export  market as I think recovery in their domestic [market] is unlikely."

Almost no purchasing has been openly seen in the market since the  start of the month, when at least 14 cargoes were heard in the market  over a span of three days. Stocks of material may remain high in Turkey  of finished products, however, as a producer said that sales of finished  products over the last two months have been smaller than expected.

Falling Chinese steel prices will pressure this further, as Turkey  found some relief through the first quarter of 2017 by exporting to  regions uninterested in skyrocketed Chinese listings.