A Canadian scrap seller has entered the Turkish market, resulting in two deals at reduced prices. The last time this exporter was in the market was March last year.
A Black Sea region-based Turkish steel producer concluded one of the deals for 25,000 mt of shredded scrap and 25,000 mt of HMS I/II 95:5 scrap at the average price of $440/mt CFR. A Marmara region-based mill concluded the second deal, for 25,000 mt of shredded scrap and 25,000 mt of HMS I/II 95:5 scrap at the average price of $436/mt CFR. These two deals have pushed down premium grade scrap prices to $421-423/mt CFR.
Meanwhile, an Iskenderun-based producer has concluded a deal for an ex-France scrap cargo with HMS I/II 85:15 scrap standing at $418/mt CFR. The cargo has around 5,000 mt of scrap.
Scrap demand in Turkey has slowed down as Turkish mills’ bookings for February shipment are now almost completed. A couple of major Turkish mills are looking for cargoes due to their higher crude steel production capacity. SteelOrbis hears that there are several US-based scrap suppliers actively seeking opportunities to sell their cargoes to Turkey. One source said there are up to five ex-US cargoes and none of the suppliers are willing to reduce their prices to the ex-Canada price levels, adding, “They may be forced to in the end. Turkey’s needs for cargoes to be shipped in February are very close to having been met, if not already met.” SteelOrbis has heard that an ex-US scrap supplier offered a cargo with HMS I/II 80:20 scrap prices at around $425/mt CFR Turkey. A European scrap supplier today stated, “We cannot reduce our prices in line with the US. Our collection costs do not give much room for a reduction.” While several European scrap suppliers are in the market intending to conclude deals, a source said that offer levels for ex-EU scrap cargoes are at around $420-425/mt CFR Turkey. At European ports, delivery prices are at around €335-345/mt DAP, depending on the grades. Although the euro-US dollar exchange rate has softened a little to 1.08 to the dollar, the slow scrap flow to yards is an ongoing problem. A German sub-collector commented, “After selling some small tonnages of scrap to export yards at €340s/mt DAP, I will increase my inventory levels.” It seems that the future trend of Turkey’s import scrap market will depend on US-based suppliers’ pricing strategy, while a small downward movement is expected under the current conditions.