There have been several deals disclosed in Turkey’s import scrap market today, September 10, with Baltic prices stable, while other European scrap prices have decreased further.
SteelOrbis has learned that a cargo from Poland has been bought by an Osmaniye-based Turkish mill for HMS I/II 80:20 scrap at $445/mt CFR and bonus grade scrap at $460/mt CFR, for October shipment. Prior to this deal SteelOrbis’ prices for ex-Baltic benchmark scrap were at $444-445/mt CFR.
Also, several ex-EU scrap transactions are rumored to have been concluded to Turkey. Two ex-Belgium deals for mixed cargoes were closed at $440/mt CFR and $436/mt CFR, respectively on average, estimated at around $433/mt CFR and $426-429/mt CFR in the same order for HMS I/II 80:20 scrap. Also, another deal from the Netherlands is rumored to have been done by an Izmir-based producer at $433/mt CFR for HMS I/II 80:20 scrap. Prior to these deals, European HMS I/II 80:20 scrap quotations were standing in the range of $435-445/mt CFR.
Market players believe that European sellers’ decision to sell at lower prices without support from the $-€ exchange rate will impact Turkey’s import scrap market negatively. The high HMS I/II 80:20 scrap inventories of European suppliers are still taking a toll on prices. Meanwhile, a German sub-collector stated it has recently sold HMS I/II 80:20 scrap to Belgium at €310/mt DDP. Another source from Germany stated that a major steel mill in Luxemburg has announced local scrap procurement prices €60/mt lower than last month at €320/mt delivered to mill. A week ago, the producer was expected to announce a €40/mt decrease in its quotations. On the other hand, a major European supplier stated that scrap flow to their yards is 30 percent slower as compared to August. According to one market player, one of France’s important scrap suppliers stated that they do not have much scrap in their inventories for September. In the Baltic region, sellers have managed to maintain their quotations and they do not expect a softening for now. SteelOrbis hears that only one ex-US cargo is currently being offered to Turkey. This lack of offers from the US reduces the pressure on Baltic scrap.
Meanwhile, Turkish long steel mills’ order books for October still have room for further bookings. Market players state that a stabilization in scrap prices may help the situation, though with European scrap decreasing further, it will be hard for Turkish steelmakers to convince buyers. SteelOrbis also hears that rebar sales to the Far East from Turkey are facing difficulties. While this week the workable import billet price level in China reached $710-715/mt CFR amid production cuts in the country, this level is considered to have the potential to make room for Turkish billet in the region. Earlier this week, billet offers from the Iskenderun region were on the table at $705/mt CFR China, but were not accepted by the buyer. Today, concluding a billet sale from Turkey to China at higher levels seems easier and also more attractive for sellers. On the other hand, Asian countries booked large tonnages of rebar in previous months and problems in the construction sector continue due to the spread of Covid-19, hence demand for Turkish rebar is not expected to recover in the short term.