Several new deals have been disclosed in Turkey’s import scrap market today, August 16, with deep sea scrap prices moving up further. The current price levels are considered attractive for both buyers and sellers amid accelerated bookings.
SteelOrbis has learned that an ex-Netherlands deal to the Iskenderun region was closed at $368.5/mt CFR for HMS I/II 80:20 scrap. Another ex-Netherlands deal, again at $368.5-369/mt CFR, was also rumored to have been done by the same producer but the latter denied that it had been done.
Also, an Izmir-based producer has concluded an ex-Germany booking with 20,000 mt of HMS I/II 80:20 scrap priced at $364.5/mt CFR and 5,000 mt of bonus grade scrap at $384.5/mt CFR. As a result, SteelOrbis’ ex-EU reference scrap price has increased to $368.5/mt CFR due to the ex-Netherlands buying activity.
Meanwhile, an ex-US booking has been done by an Istanbul-based mill with HMS I/II 90:10 scrap standing at $372/mt CFR. This price signals $369/mt CFR for ex-US HMS I/II 80:20 scrap. Another ex-US cargo is rumored to have been sold to Izmir with HMS I/II 80:20 scrap at $367/mt CFR; but this information was rejected by the seller. Amid the increase observed in ex-EU scrap deals, SteelOrbis will revise its ex-US scrap prices to $373-375/mt CFR for now.
Baltic region-based scrap suppliers are also back in the market. An ex-Sweden deal was done by a Marmara-based producer for HMS I/II 80:20 scrap at $370/mt CFR, with shredded scrap at $390/mt CFR and bonus scrap at $390/mt CFR. Additionally, an ex-Lithuania cargo has been bought by another Marmara-based producer with HMS I/II 80:20 scrap standing at $370/mt CFR, according to market sources. The second deal was not confirmed by the buyer or the seller. Accordingly, SteelOrbis will revise ex-Baltic scrap prices to $370/mt CFR.
Two ex-Romania deals have been done in Turkey at $352-358/mt CFR for HMS I/II 80:20 scrap. An Italian cargo was bought at $358/mt CFR Turkey for the same grade. Accordingly, short sea scrap prices have surged significantly and will be revised up by $35/mt.
Turkish mills have been working with low scrap inventories for a while and are now taking action to secure deep sea tonnages. A contact at one Turkish mill said, “These levels are still high for us to sustain our production rates. But producers do not want to miss the available delivery terms when prices are visibly going up. We believe the $370-375/mt CFR range will be the peak of deep sea quotations.” The same source pointed to the Turkish government’s tight monetary policy and added that accessing money will be harder for everyone in the coming months, and so no significant revival in the finished steel market is expected, despite Turkish mills’ willingness to buy deep sea cargoes now. One Baltic scrap seller said deep sea scrap prices have some more room to go up, commenting, “Maybe closer to $380s/mt CFR. Turkey has already bought 15-16 deep sea cargoes and the pressure on Turkish mills is declining. There are buyers in need deep sea cargoes, but there is also a number of sellers waiting for higher levels. Around $380s/mt CFR, the market should gain some balance.” A supplier of ex-US and ex-EU scrap cargoes also mentioned Kardemir’s billet sales which opened and closed today. Some sources state that 105,000 mt of billet were sold at 510$/mt, while others said Kardemir closed its sales after reaching 80,000 mt. “With these billet prices, $590/mt ex-works for rebar should start working in the local market. Hence, deep sea scrap prices shall increase towards $380s/mt CFR, but higher than this level seems unlikely without the support of finished steel sales.” Another ex-US and ex-EU scrap supplier stated that the current levels are acceptable to buyers and sellers, adding, “lower than $370s/mt CFR for European scrap causes a significant slowdown in flow to export yards.” A German sub-collector agreed, saying “Below €305s/mt delivered to the Netherlands is not acceptable for us anymore. Due to the holidays and lower prices, we are accessing lower tonnages from our local markets. Therefore, we need higher price levels to cover our monthly costs. We see the situation in Turkey, and only aim to hold the money we gained in the first half of the year, not more. Currently, Italy’s HMS I/II procurement prices are at €300/mt, and some sub-collectors closer to the Bavarian region prefer selling to Italy right now because they have a freight advantage. Such examples mean the flow to export yards may remain slow for now.”