The current week has started with ex-Baltic HMS I/II 80:20 scrap prices remaining stable in a new deal.
SteelOrbis has learned that an Iskenderun-based producer has concluded the booking for 23,500 mt of HMS I/II 80:20 scrap at $445/mt CFR, 6,000 mt of shredded scrap at $460/mt CFR, 2,500 mt of bonus grade scrap at $460/mt CFR and 3,000 mt of rail scrap at $465/mt CFR. The cargo will be shipped in October. Prior to this transaction, SteelOrbis had reported a stable price for Baltic origin HMS I/II 80:20 scrap in the range of $444-445/mt, neglecting a deal from St. Petersburg closed at $432/mt CFR due to the special conditions relating to the cargo.
Market players believe that more Turkish mills are making price inquiries as of this week. The mood in Turkey’s import scrap market is improving with some players expecting prices to hit bottom in the current week. Since US-based suppliers are still out of the market, with Baltic sellers giving signals for their price levels in recent deals, all eyes have turned towards European sellers. As SteelOrbis mentioned in previous reports, European sellers are confident that prices shall at least remain at their current levels, citing the lack of prime grades such as shredded and bonus which are also sought by alternative markets with more attractive quotations.
Early today, September 6, Turkish mill Icdas opened its rebar sales at $680/mt ex-works. The offer has indicated a TRY 15/mt decline, though it remained stable on the US dollar basis as compared to early last week. According to sources, after the price announcement, Icdas closed some deals at a special price of $660/mt ex-works and afterwards decided to set a new official offer level for the second time in a single day at $670/mt ex-works. Izmir-based mills have slightly increased their domestic rebar prices today, signaling that domestic rebar sales volumes have been in line with expectations. Meanwhile, Import hot rolled coil (HRC) prices in Turkey have softened again this week, dropping below the psychological level of $900/mt CFR. Local prices for HRC in Turkey have settled at $950-975/mt ex-works for November deliveries. While the offers of CIS-based mills are still standing at $600-605/mt FOB, the bids from Turkey are at $615-620/mt CFR. “The lack of exports is worrying,” several market players report.