European scrap prices to Turkey have moved up slightly after two deals closed from the EU, while Venezuelan scrap is rumoured to have returned to the market. There is cautious optimism observed in Turkey’s import scrap segment.
SteelOrbis has learned that an ex-France deal has been closed by an Izmir-based producer for 25,000 mt of HMS I/II 85:15 scrap at $390/mt CFR, for July shipment. The information indicates that ex-France HMS I/II 80:20 scrap is now at $387/mt CFR, $4/mt higher than the previous deal done from the UK.
Another ex-Belgium deal from Ghent was done by a Marmara-based mill for HMS I/II 80:20 scrap at $387/mt CFR, for July shipment, supporting the idea that European scrap prices are moving up as anticipated.
According to an unconfirmed rumour, a Venezuelan cargo has been bought by Turkey with HMS I/II 80:20 scrap standing at $390/mt CFR, though no further information about this cargo was available at the time of publication. Another unconfirmed report states that an ex-Baltic booking by an Iskenderun-based producer has been closed at $382/mt CFR for HMS I/II 80:20 scrap.
A new Romanian deal has been closed at $365/mt CFR Turkey, while Italian HMS I/II 80:20 scrap has been sold at $375/mt CFR. Under the current conditions, short sea scrap sellers are aiming for $370-375/mt CFR for Romanian HMS I/II 80:20 scrap, but this level is considered unworkable by Turkish buyers.
Market players believe that deep sea scrap prices are moving up closer to $400/mt CFR, while some believe this threshold will be breached quickly. US scrap suppliers are now aiming for $395/mt CFR and above. “Whether mills will accept these levels or not is at their discretion, but scrap supply in the US is also very slow and gives no room to exporters to accept lower quotations,” one seller reported. The same has been said regarding European scrap flow for weeks now. With the holiday season in the EU, scrap flow is expected to decline further. Current collection prices at EU export ports are in the range of €315-320/mt DAP, as reported yesterday, June 6, with available tonnages on the low side. SteelOrbis’ expectations for the upcoming ex-US bookings are at at least $392-393/mt CFR Turkey for the benchmark grades. Meanwhile, Turkish mills’ price inquiries for deep sea scrap cargoes are accelerating. While the depreciation of the Turkish lira continues at a rapid pace, finished steel demand changes on a daily basis. Yesterday, the local Turkish rebar market was lively in terms of trading, but today it is silent amid the sharp change observed in the exchange rate. A source at one Turkish steel mill commented, “Turkey’s import scrap market - or import semi-finished demand for that matter - will be shaped by the local dynamics from now on.” As a result, the impact of the fluctuations in the exchange rate should be monitored closely, despite the obvious need for deep sea scrap cargoes for July shipments.