As anticipated by SteelOrbis, European suppliers have resisted the lower scrap price levels desired by Turkish mills and the ex-EU HMS I/II 80:20 scrap price has recovered somewhat in a new deal.
SteelOrbis has learned that an ex-Belgium booking has been done by an Izmir-based producer for 20,000 mt of HMS I/II 80:20 scrap at $329/mt CFR, 10,000 mt of shredded scrap at $344/mt CFR and 10,000 mt of bonus grade scrap at $344/mt CFR. The cargo is believed to be for shipment in July. The previous ex-EU scrap deal was done from the Netherlands at an average of $318/mt CFR, signalling $315/mt CFR for ex-Europe HMS I/II 80:20 scrap.
Additionally, an ex-Baltic deal was done by a Marmara-based mill yesterday, June 28, with HMS I/II 80:20 scrap at $340/mt CFR and bonus scrap at $355/mt CFR. The total tonnage of the cargo is 25,000 mt.
Also, there is a rumour in the market about an ex-US deal done to Turkey’s Iskenderun region at the end of last week, with the HMS I/II 80:20 scrap price standing at $335/mt CFR. Although this information was not confirmed by the buyer or the seller, market players believe that it was in fact done. One US scrap seller stated that the grade may be HMS I/II 90:10 instead of HMS I/II 80:20. Again, since this deal was done last week and now we have recorded $329/mt CFR for European benchmark grade, ex-US HMS I/II 80:20 scrap prices have the potential to increase from the $330/mt CFR seen in the most recent confirmed transaction reported by SteelOrbis yesterday, June 29.
With the positive sentiment strengthening in Turkey’s import scrap market, short sea scrap suppliers have stopped sharing offers with Turkey. “There are literally no offers from Romania and Bulgaria,” a short sea scrap seller reported. Also, for Israeli scrap, bids from Iskenderun-based producers have increased by $25/mt in just one day, from $270s/mt CIF to $295/mt CIF. “Despite the higher numbers in Turkish mills’ bids, we are not accepting them right now. The price is recovering and we have decided to wait,” an ex-Israel HMS I/II 75:25 scrap seller reported.
On the other hand, the Turkish finished steel market is livelier as compared to the end of last week. The rumours of Turkish mills successfully exporting to Southeast Asia once again are supporting the market, and even traders in the local rebar market has given up their expectations of a price decrease below $600/mt ex-works. As trading starts at a gradual pace in Turkey, the possibility of Turkish mills deciding to cut their capacity utilization rates further is shrinking. A police investigation about fraud in the local Turkish steel market, which started yesterday, is continuing, leading players, mainly traders, to take action in terms of purchases as lower-priced material is now forced out of the market.