According to market sources, Lebanese offers for HMS I/II 80:20 scrap to Turkey have indicated a decline of $10/mt in the past two weeks and are now standing at $330/mt CFR. In June, the latest Lebanese scrap deals for the Iskenderun region of Turkey were concluded at $330-332/mt CFR for prompt shipments.
Meanwhile, due to the ongoing crisis in Iraq, export activity for finished steel from the Iskenderun region to Iraq has halted, leading to further declines in scrap demand from mills in the Iskenderun region. It is reported that Turkish mills are seeking to get offers at around $320/mt CFR for July bookings and after receiving offers at these levels they will decide to make new purchases. In addition, transaction prices both in deep sea scrap deals and in the ex-US booking in Turkey concluded yesterday, July 3, have indicated a decrease of $1-2/mt as compared to the previous levels. If deep sea scrap prices continue to move downward, Turkish mills will likely get discounts from Mediterranean scrap suppliers.