Several deals closed last week are disclosed in Turkey’s import scrap market today, August 9, indicating a decrease in prices.
SteelOrbis has learned that an ex-US scrap deal was closed by an Iskenderun-based Turkish producer last week for 30,000 mt of HMS I/II 80:20 scrap at $461/mt CFR, 5,000 mt of shredded scrap at $476/mt CFR and 5,000 mt of bonus grade scrap at $476/mt CFR, for September shipment. The previous ex-US HMS I/II 80:20 scrap price was at $463-464/mt CFR in deals.
Meanwhile, a steelmaker again based in Iskenderun has concluded a deal from a seller operating from Belgium. The deal was closed around August 4-5, cargo consists of 10,000 mt of HMS I/II 80:20 scrap at $458/mt CFR, 15,000 mt of shredded scrap at $478/mt CFR and 15,000 mt of bonus grade scrap at $478/mt CFR, to be shipped in the first half of September. Prior to this transaction, SteelOrbis’ estimations for European benchmark grade were in the range of $455-460/mt CFR. Previously, an ex-UK scrap deal to a Marmara-based mill was done last week for 25,000 mt of HMS I/II 80:20 scrap at $460/mt CFR, but this deal is now irrelevant.
As of today, most market players believe that deep sea HMS I/II 80:20 scrap prices have little room to decrease. While some sellers think that $460s/mt CFR are the bottom, some think that prices will at most decrease to $450s/mt CFR. One seller stated that suppliers in all regions believe that the current levels are low enough and that they shall rise higher. A major European scrap seller stated their policy of firm prices has not changed. Even some mills agree that sellers have concluded some sales with break-even prices, though some mention that the changes in $-€ exchange rate could have helped European sellers. Another contact from a mill in Iskenderun said he believes that the levels of $460-465/mt CFR are acceptable to all and prices will stay in this range for some time.
Turkish mills have completed their purchases for the first half of September, and so trade in the current week may be slow. One of Turkey’s important producers mentioned that the lack of shredded scrap in the international market has come to an end, with shredded being easily found nowadays. On the other hand, a contact from a mill has drawn attention to the announcements made by the US Fed and the international markets’ tendency to once again focus on the US dollar, which led to a sharp decrease in prices of precious metals. Also, the slowing growth in China is causing concern amongst some players, which state that Turkey is not receiving as much demand as it anticipated from the Far East after China’s decision to cancel tax rebates. “Order books are starting to feel the pressure for September and October,” one source added, while another stated, “The good old days are coming to an end. There is only one month left for Turkish mills: if this period passes without any exports, Turkish mills will start to think about cutting their utilization rates.”
