TURKEY May 16 2016 4:50 PM
ANKARA (Scrap Register): The April monthly average of the daily benchmark index for Turkish imports of HMS #1&2 80:20 rose to $274.19 a ton CFR Iskenderun port, up 26.8% month-on-month from March. The scrap price has risen on the back on increased finished steel demand in Turkey.
The Turkish steel market continued to see upward price movements throughout April. Market participants noted that strong demand was the driver for higher prices and so mills had a lot more confidence in passing higher costs on to customers.
A number of cargoes were booked for delivery ahead of the fasting month of Ramadan when, typically, crude steel output falls. Moreover the increase in rebar export prices, which was also as a result of renewed strength in the Turkish lira versus the US dollar, also had a knock on impact in the form of higher scrap prices.
The scrap price was further supported by a strong US domestic scrap market, meaning Turkish mills had to make competitive bids in order to secure US material.
However looking ahead, with an increase of nearly 27% in the past month, participants have become wary as they believe there is currently too much volatility and uncertainty and that the Turkish scrap imports market may have overheated.