TURKEY December 28 2015 9:40 AM
ANKARA (Scrap Register): The price of scrap imports into Turkey has remained relatively stable through to mid-December, said the Steel Index in a snippet.
Following the November buying-spree by mills, demand has dropped back down to one or two cargoes a week. Supply is also reportedly getting tighter now that winter has set in, all of which could see prices remain stable through to January.
However, the monthly average of TSI’s daily benchmark for Turkish imports of HMS #1&2 80:20 CFR Iskenderun port rebounded strongly off the record lows seen in October, with the monthly average climbing nearly 10% month-on-month.
The daily index reached as high as $200 a ton in early November, before dropping back to around $190 a ton, where it has remained stable into December.
The rapid rise in pricing was as a direct result of the re-run general election in Turkey, where a firm majority government was formed. This meant many steel-intensive projects which were put on ice got the green-light, and mills saw an almost overnight rebound in demand.
Mills secured numerous bulk cargoes in a two-week period, many of which were for prompt delivery which saw yards crank their prices up.
Many saw this sudden surge of demand as a short-lived thing, and predicted prices would decline once mills had got their fill. The demand certainly dropped away in late November and early December, but prices have thus far remained stable at $190 a ton - probably due to winter now setting in.