Traders saw less erratic price movements in March and April although early increases of US$ 15 were not sustained. Shipment prices for HMS I/II 80/20 climbed in March but slipped to around the US$ 310 paid at the start of the review period.
Worldwide ferrous scrap markets followed Turkey’s movement on price and demand in recent weeks with a mild recovery seen across many global scrap markets through March but then edging back in April. Although Turkey’s ferrous scrap prices rose during March, events in April including a disputed election result in that country saw prices fall enough to cancel that growth.
During March, mills continued to book scrap to replenish their stocks at higher prices, with one Baltic cargo sold into Turkey at US$ 319 per tonne for HMS I/II 80/20 on a cfr basis and another at US$ 322. This compares with a Baltic cargo traded at US$ 310.50 in the last report, according to Fastmarkets.
A European cargo was also booked with HMS I/II 80/20 priced at US$ 315 per tonne on a cfr basis. Further deals confirmed higher prices with several European and UK cargoes being traded at US$ 320 per tonne cfr for HMS I/II 80/20.
Turkish mills took a break from purchasing scrap due to the upcoming national elections, ongoing currency issues with the Turkish Lira and weak export markets due to trade barriers in other countries and resumed at similar rates. But a UK cargo was booked priced slightly lower than recent cargoes, with HMS I/II 80/20 at US$ 315 per tonne cfr.
Mills were reluctant to buy more scrap at these new higher prices so sold cargo prices began to edge down, with a US cargo sold at US$ 320 per tonne cfr for HMS I/II 80/20, a Baltic cargo pricing HMS I/II 80/20 at US $319 and a European cargo pricing HMS I/II 80/20 at US$ 318 per tone cfr, all down from previously traded prices.
Prices climbed higher again with US HMS I/II 80/20 sold at US$ 328 per tonne cfr and several Baltic HMS I/II 80/20 cargoes priced at US$ 317.50 per tonne and two at US$320 per tonne cfr. The market attributed these booked cargoes and higher prices to improved export sales of finished steel products.
The market once more returned to a period of silence elections in Turkey in March and the ongoing volatility of the currency. Prices however began to move down at the start of April, with a European and UK cargo booked at US$ 308 and US$ 315 per tonne cfr respectively for HMS I/II 80/20.
Political parties disputed the election result, creating confusion and adding to market uncertainty. Two US cargoes were sold at US$ 306 and US$ 308 per tonne cfr for HMS I/II 80/20, down by US$ 20 when compared with the previous sold US cargo.
A US cargo of HMS I/II 80/20 confirmed at US$312.50 per tonne cfr is the last known sold cargo into Turkey at the time of writing although there were reports of another at US$ 308.
This article is part of the latest ferrous market analysis. You can read the entire report here.
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