An ex-US scrap deal to Turkey heard over the weekend indicates that deep sea scrap prices to Turkey have decreased by another $5/mt. This downward movement did not come as a surprise to market players because the negative sentiment was pointing to further decreases.
SteelOrbis has heard that the ex-US scrap deal was done by an Iskenderun-based producer for HMS I/II 80:20 scrap at $385/mt CFR, shredded scrap at $405/mt CFR and bonus scrap at $405/mt CFR. While there is no direct confirmation of this deal, market players believe that it was actually done. As a result, SteelOrbis will change its ex-US HMS I/II 80:20 scrap price to $385/mt CFR.
International scrap prices remain soft. Turkey’s appetite for scrap has diminished as deep sea scrap prices are declining. There are at least 14 cargoes on offer in the market, seeking buyers. European scrap collection prices have declined to €315/mt DAP, according to market sources. Both US and EU suppliers are expected to push collection prices down in the coming weeks. Flat steel prices in the US continue their downward movement unabated, while domestic demand in the EU provides little support for local scrap prices. Domestic benchmark DKP grade scrap prices in Turkey have also declined, to $384-421/mt delivered to customer, excluding VAT. This is the result of softening rebar prices, some sources believe. As Turkey’s rebar market has stagnated with limited trading seen, the workable rebar price seems closer to $595-610/mt ex-works for serious buyers. SteelOrbis has heard rumors of a major Turkish producer accepting $595/mt ex-works for local rebar sales over the weekend. Traders think that $580s/mt ex-works for domestic rebar may attract attention from buyers. Despite some support from the long and flat steel segment, deep sea scrap prices are expected to remain soft, with US scrap suppliers being aggressive with their offers. One US-based scrap supplier said that $380s/mt CFR Turkey for benchmark HMS I/II 80:20 scrap may be seen very soon, while another agreed, but added that European scrap suppliers may decide to take a step back considering the average cost of their inventories.