The import scrap market in Turkey has been quiet after the ex-UK HMS I/II 80:20 deal closed at $277/mt CFR deal in the middle of the week. There is a sufficient number of scrap offers in the market, though no fresh deals have been reported. In particular, sellers from Europe and the US are offering HMS I/II 80:20 at $280-285/mt CFR. Some sources think that prices may decrease to $270-275/mt CFR in the coming days if buyers remain silent.
According to SteelOrbis’ estimates, Turkey needs around seven to eight deep sea scrap cargoes for shipment in the second half of February. At the same time, most sellers are offering for March shipments already.
The short sea scrap market in Turkey has also been quiet, contrary to expectations. No fresh offers have been heard from Romania and the Adriatic region as suppliers report that there is a lack of orders from the Turkish side. The latest prices were fixed at $268-270/mt CFR, as reported earlier. Sellers from Russia are not in the market for exports, indicating better business conditions in their local market.
In the meantime, some fresh sales have been closed for ex-Israel HMS I/II 75:25. One lot was for 3,000 mt at $262/mt CFR, while another cargo of 7,000 mt has been bought in Iskenderun at $255/mt CFR. As a result, the price from Israel has decreased by $10/mt compared to the previous level in transactions. In the meantime, bids from Turkish buyers for Israeli scrap are at $250/mt CFR.
Generally, the mood in the Turkish scrap market remains negative, supported by some slow sales in the finished steel segments. However, while in the rebar sector business is not going to revive significantly, in the flat steel segment there are some chances for better sales to the EU amid some production cuts, including the cuts at ArcelorMittal Gent. It is also worth mentioning that, according to market players’ estimations, Turkish mills’ HRC break-even cost price today is at around $470/mt, while the targeted sales price is above $500/mt. In the rebar segment, however, the cost of production basically matches today’s offers at $435-440/mt.