As a result of the high number of offers from the US, Turkey has managed to purchase another cargo from the country at lower price levels.
SteelOrbis has learned that the ex-US transaction in question has been concluded by a Marmara-based mill for 22,000 mt of HMS I/II 80:20 scrap at $485/mt CFR, 20,000 mt of shredded scrap at $500/mt CFR and 3,000 mt of bonus grade scrap at $500/mt CFR, for August shipment. This is the second cargo booked in the past two days from the US at the same price level. It is also the fifth confirmed deep sea cargo that has been bought by the same producer since the beginning of the month. The first booking by this buyer disclosed to the market was closed at $496/mt CFR for HMS I/II 80:20 scrap on July 7.
This week, US suppliers are observed to be aggressive in the market, which has led them to decrease their prices for Turkey against the backdrop of the unwillingness of Turkish steelmakers to purchase cargoes ahead of the holidays in Turkey. One small German scrap collector working with exporters stated that higher grades such as bonus are being sold in their domestic market, while some traditional EU-based sellers to Turkey have taken a step back from the market for now. Meanwhile, another player from Germany has reported that cut grade scrap prices are at high levels of €360-370/mt delivered to mill due to previous export sales done in early and mid-June, while E1 grade scrap is at €400/mt delivered to mill in Germany.
Having said that, SteelOrbis observes that sentiment in the market is pessimistic, with most market players waiting for a further decline in deep sea scrap prices. A source from a Turkish mill commented that, with Turkish rebar export sales being silent for some time now, they are still not hopeful about demand from Asia in the coming period.
As of today, traders in the local Turkish rebar market are reporting that the market has now fully entered into the holiday mood. Traders’ prices are approximately TRY 100/mt or $12/mt lower than mills’ domestic prices, sources comment, despite the lack of some dimensions in the market.