In a new deal disclosed in Turkey’s import scrap market today, August 22, European scrap prices have softened slightly. Turkish mills’ demand for scrap has slowed down this week, as most of them have concluded deals over the past two weeks and are not in the mood to conclude scrap bookings for longer delivery terms.
SteelOrbis has learned that an ex-Belgium scrap deal was done by a Marmara-based producer yesterday, August 21, for 25,000 mt of HMS I/II 80:20 scrap at $365/mt CFR, 5,000 mt of bonus grade scrap at $385/mt CFR and 5,000 mt of shredded scrap at $390/mt CFR. As compared to the most recent ex-EU deal, HMS I/II 80:20 scrap prices have softened by $3.5/mt. Meanwhile, as SteelOrbis mentioned in previous reports, shredded scrap prices throughout Europe are rising amid lower scrap generation, causing the gap between HMS I/II 80:20 scrap and higher grades to widen.
Market players report that Turkish mills are more silent this week as compared to the past couple of weeks. “Since they bought several deep sea cargoes in succession last week, we can say their appetite has been satisfied somewhat for now,” a European scrap supplier commented. Therefore, deep sea scrap prices are considered to have hit a peak in the range of $365-373/mt CFR, with the upper end representing the recent ex-US bookings. On the other hand, Turkish producers’ efforts to achieve higher prices in the local Turkish rebar market have failed. Turkish traders bought some rebar when scrap prices were rising but, according to some sources, traders’ inventory levels are sufficient for 15-20 days. “We are waiting for the announcement of the Turkish Central Bank on Thursday, August 24, regarding interest rates. Initial expectations are for a rise in the range of 100-250 basis points.
Meanwhile, short sea scrap prices at first recovered to $350-355/mt CFR for ex-Romania HMS I/II 80:20 scrap, moving up from $352-353/mt CFR. However, currently the workable levels for this grade are at around $350/mt CFR. Ex-Mediterranean HMS I/II 75:25 scrap prices are at around $345/mt CFR.