Following the ex-Baltic scrap transaction heard at the beginning of this week, price expectations in the import scrap market in Turkey have been lowered. However, the number of Turkish mills willing to conclude new purchases is limited since they are restricted by their slack finished steel sales and the overall uncertainty in the market.
Market sources state that there are three to four deep sea cargoes on offer in the market, with offer prices still at around $250/mt CFR. But Turkish buyers’ firm bids for deep sea HMS I/II 80:20 scrap are currently at $240-245/mt CFR. Even though firm bids are heard, market sources state that there is very little demand at this price range in Turkey. The workable levels for this grade are currently at $245-250/mt CFR, some sources believe. In the ex-Baltic deal mentioned above, the HMS I/II 80:20 scrap price was at $242/mt CFR, indicating a $13/mt fall in prices as compared to the levels recorded in the previous transaction.
Meanwhile, short sea HMS I/II 80:20 scrap offers to Turkey have remained in the range of $240-245/mt CFR as short sea suppliers want to see more deep sea deals before reducing their offer levels. SteelOrbis has heard that firm bids from Turkish mills for ex-Romania HMS I/II 80:20 scrap have decreased to $235/mt CFR, and that the workable levels are reportedly at $235-240/mt CFR. Also, there are rumors of a short sea deal from the Adriatic region to Turkey closed at $235/mt CFR. In Russia in particular, scrap supply is at low levels, market sources report, while Russia will also be on holiday for ten days at the beginning of May.
According to market sources, there is almost no demand for ex-Mediterranean HMS I/II 75:25 scrap, though suppliers are ready to conclude sales at $220/mt CFR. The most recent deal for the Mediterranean HMS I/II 75:25 scrap was done last week at $225/mt CFR.
The negative sentiment in the Turkish finished steel market is taking its toll on scrap demand. “If Turkish mills decide to wait more before concluding any import scrap transactions, prices have a tendency to move down”, a market source stated, adding, “We need to see more deep sea deals.” Sources report that scrap collection costs have not decreased, particularly in Europe, while measures taken in the region against the coronavirus are planned to be eased in the near future. It is also noteworthy that Turkish mills have mostly completed their purchases for May shipments and some believe their future purchases will depend on the steelmakers’ finished steel sales.
