As the result of Turkish mills’ successful policy of exerting pressure on prices, Turkey’s import scrap market has continued its downward trend in an ex-Baltic transaction.
SteelOrbis has learned that an ex-Estonia deal has been closed by an Izmir-based producer for 18,500 mt of HMS I/II 80:20 scrap at $455/mt CFR, 1,500 mt of bonus grade scrap at $470/mt CFR and 5,000 mt of shredded scrap at $470/mt CFR. The cargo will be shipped in the second half of September. Prior to this deal, the most recent deep sea scrap deal was done from the US at $461/mt CFR for benchmark grade.
As indicated in our previous reports, deep sea suppliers concluded several deals to Turkey at lower-than-previously-recorded price levels. Some players state that, contrary to what US-based suppliers say, the US will return to the market with cargoes available for the second half of September. This expectation is also exerting further pressure on quotations. Also, Baltic sellers are expected to target Turkey for new sales in the coming days since they have been out of the market for some time now. The sentiment in terms of the price trend for the rest of September is negative, most players state. One seller commented,“$440s/mt CFR can be seen in August for deep sea prime, though the $425/mt CFR voiced by some mills is just a dream.” Another market player stated, “The collection prices in Europe are high and even $450s/mt will not surprise the market, but $445s/mt CFR will.” The main problem in the market is still the lack of positive developments to support the upcoming transactions in terms of prices, SteelOrbis understands.
