An ex-Baltic deal has been disclosed in Turkey’s import scrap market during the weekend, with prices higher than the initial expectations. While no ex-Baltic booking had been heard for some time, the price levels in the deal in question have decreased in line with the ex-US transactions closed last week at $339.5/mt CFR Turkey.
SteelOrbis has learned that the ex-Baltic deal was done by an Iskenderun-based producer for HMS I/II 80:20 scrap at $342.5/mt CFR and 8,500 mt of a mixture of bonus scrap, busheling scrap, oxi and rail grade scrap at $362.5/mt CFR. The total tonnage of the cargo is 35,000 mt and it will be shipped in December. Prior to this deal, ex-Baltic HMS I/II 80:20 scrap quotations were lowered to $335-339/mt CFR.
The main question in Turkey’s import scrap market is whether prices may show an upward movement or not. “I think they can,” a seller commented, “since there are not enough cargoes offered to Turkey for December shipments and I think Turkish mills need at least 10-12 cargoes for this period.” Another ex-Baltic supplier is heard to be offering a cargo at $345/mt CFR Turkey, and US suppliers are expected to increase their offers slightly to around $345/mt CFR. A European scrap seller is rumored to have offered a cargo at $350/mt CFR Turkey, though this information has not been confirmed by the time of publication. A Turkish producer stated that it is not surprising for European sellers to voice $350s/mt CFR for December shipments under the current conditions. European sub-collectors state that scrap flow to yards has slowed down by 30 percent, while inland transportation is still more expensive than usual due to ongoing coal shipments. While European scrap exporters mostly mention they are getting ready for the holiday season, they are in no rush to sell scrap by lowering their prices to Turkish mills’ desired levels. However, it should be noted that any eventual upward price adjustment will be the result of lower availability of scrap and will not be supported by a price or demand increase in the finished steel segment. Turkish mills’ local rebar prices are still vulnerable amid the lack of sustainable demand, while their export sales are still on the low side, limited to the regular markets such as Yemen, Israel and North Africa and to small tonnages.
