A slight price decrease has been recorded in Turkey’s import scrap market with an ex-Denmark scrap deal disclosed today, August 4.
SteelOrbis has learned that a Black Sea region-based Turkish mill has concluded the transaction in question consisting of 22,000 mt of HMS I/II 80:20 scrap and a 3,000 mt of a mixture of bonus and HMS I scrap at the overall average price level of $463/mt CFR. The cargo will be shipped in the middle of September. The price for HMS I/II 80:20 scrap in the cargo is estimated at around $461/mt CFR. As a result, ex-Baltic HMS I/II 80:20 scrap prices have decreased slightly from the previous level of $464/mt CFR recorded yesterday.
As of today, a major European scrap seller stated that their price policy is firm for Turkey. An ex-US scrap seller mentioned that, with a lot of deals already done from the US, not much is left for shipments in the second half of September, and so EU-based suppliers will play a determining role in the coming period. The mixed signals coming from China regarding production cuts are considered to be confusing by most players. In the recent government announcement, China stated that it will avoid “campaign-style” carbon reduction efforts and this statement raised worries that crude steel production will not be cut in the second half of the year as had been expected. On the other hand, some market sources said that in a number of provinces in China production cuts will still be implemented, though no details about the size of reduction have been heard.
Meanwhile, Turkey’s rebar export prices have been following a decreasing trend amid the pressure exerted on prices by international buyers in line with Turkey’s lower import scrap prices and overall quiet international demand. In addition, rising freight rates have become one of the main constraints facing export these days, putting pressure on mills’ margins. Also, some buyers are taking their time as they believe further discounts may be on the table in the short term. This week, most official offers from Turkish mills decreased by $10-20/mt to $720-730/mt FOB, while levels $10/mt lower are possible for serious buyers.
