Buyers and sellers in Turkey’s import scrap market have been finding common ground in terms of pricing as the current week proceeds. Four new deals have surfaced in the market since late yesterday, June 24, reflecting the ongoing stability of prices. As SteelOrbis reported earlier this week, Turkish mills were showing readiness to negotiate with a slight rise in prices.
SteelOrbis has learned that an Iskenderun-based steel producer has concluded a deal from the US with the HMS I/II 80:20 scrap price standing at $345/mt CFR. Another ex-US booking was done by a different mill in Iskenderun for HMS I/II 80:20 scrap at $345/mt CFR, with shredded and bonus grades at $365/mt CFR. These prices for the benchmark HMS I/II 80:20 scrap are the same as the price recorded in an earlier ex-US transaction that closed on June 22.
Meanwhile, it is rumored that one of the abovementioned Iskenderun-based producers has closed an ex-Belgium booking for HMS I/II 80:20 scrap at $336/mt CFR, with shredded and bonus grades at $356/mt CFR. Again, benchmark scrap prices are as recorded on June 22.
Additionally, an ex-St. Petersburg deal done by an Izmir-based steelmaker was closed at $342/mt CFR for HMS I/II 80:20 scrap, market sources reported, indicating a $1/mt increase in the ex-Baltic reference price.
While Turkey’s new appetite for scrap observed this week signals that Turkish mills are not cutting their capacity utilization rates in the short term, market sources still continue to remain cautious. “We do not expect a significant recovery either in Turkey’s scrap demand or in prices,” a seller commented. Another source said the market is stuck in a very narrow range and there is no push either up or down towards a change. “We are going to experience another slow summer, I am afraid,” a third market player reported. “We see that the number of offers and the number of willing buyers are similar now. This also creates a balance in the market,” a source told SteelOrbis today, June 25. The mood in the EU scrap market is no different. As SteelOrbis reported yesterday, July is just around the corner and it traditionally coincides with the summer holidays in Germany. Therefore, it is likely that several players will remain out of the market. “A month of flat calm is awaited,” a German scrap trader said. “Personally, I think the market will be subdued. Production stoppages will weigh on demand, and collection will also be slow,” another source commented.
The ceasefire between Israel and Iran seems to be holding for now, exerting a positive impact on global futures markets. Meanwhile, Bloomberg News reported on Wednesday, June 25, “The European Union has vowed to retaliate if the US sticks with its baseline 10 percent tariffs.” This shows that the turmoil created by the US tariffs on global trading routes has not ended yet. The EU is trying to reach an agreement with the US before the deadline of July 9. In the meantime, in Turkey on June 30 a court will decide whether to annul the results of last year’s leadership congress held by Turkey’s main opposition party.