The declining trend in the import
scrap market in
Turkey has continued in the recent deals heard. Even though ex-US
scrap prices to
Turkey have remained in the range of $190-192/mt CFR, new deals are expected to be at lower levels. Meanwhile, supplies are very plentiful in the local US market and market sources expect
scrap prices for October to decline sharply.
Scrap suppliers in
Europe in general and in the Baltic region in particular have reduced their prices. Last week, a European
scrap supplier concluded several deals in
Turkey, reducing its prices gradually for HMS I/II 80:20
scrap from $192/mt CFR to a reported $180/mt CFR. Although the supplier has not officially confirmed the price level of $180/mt CFR yet, stating that the last deal was concluded at $185/mt CFR, market sources indicate that the level $180/mt CFR has been reported in the Turkish market. Meanwhile, demand for ex-
Europe scrap has remained unchanged at medium levels. With the declines seen in
scrap prices,
scrap collection activity has slowed down in the region, but this has not yet been reflected in
scrap supply in
Europe.
In the Baltic region,
scrap collection costs had been on the high side for a long time, causing suppliers' to maintain a firm stance on their prices. However, this week
scrap suppliers in the Baltic region have started to give ground. A supplier in the region, which had been trying to conclude sales for some time has reduced its prices for HMS I/II 80:20
scrap to $190/mt CFR.
Chinese billet offers to
Turkey are currently at $260/mt CFR. Turkish producers believe that
scrap prices would need to decline further in order to be an alternative to Chinese billet. They also have continued their negotiations with
scrap suppliers throughout the SteelOrbis 2015 Fall Conference & 73rd IREPAS Meeting in Rome, where they have indicated that current
scrap price levels are not low enough to cause them to prefer
scrap instead of Chinese billet.
Scrap suppliers think that prices have not yet reached the bottom, but are now closer to it.
Scrap deals which will be concluded in the near future are expected to be at lower price levels.