The anticipation of a slight recovery in Turkey’s deep sea scrap market has been realized in a new deal. Scrap suppliers had stated that their collection prices meant higher levels for Turkey, but Turkish mills were reluctant to conclude bookings at sellers’ desired levels. This week, though, sellers seem to have achieved their aim, convincing some mills to reconsider.
SteelOrbis has learned that an Iskenderun-based mill has concluded an ex-Belgium deal with HMS I/II 80:20 scrap standing at $352/mt CFR, and shredded and bonus grade scrap at $377/mt CFR. The gap between higher grades and HMS I/II 80:20 scrap is $25/mt in this deal. The benchmark grade price level is $6/mt higher than in the previous ex-EU bookings.
SteelOrbis hears that US scrap suppliers are offering HMS I/II 80:20 grades at around $360s/mt CFR Turkey. Some market players believe that a Canadian scrap seller may consider slightly lower levels to be workable. Meanwhile, most players anticipate European scrap prices will remain higher than $350/mt CFR. A Baltic region-based scrap supplier stated, “It is possible ex-US HMS I/II 80:20 scrap prices may reach $360-370/mt CFR in the coming fortnight”, though he does not expect higher levels. European scrap flow to export yards is still slow, with collection prices at €280-285/mt DAP failing to attract large volumes. “We see that flow continues to be a problem,” a sub-collector said, adding that they are not in rush to sell their tonnages if the price is not attractive enough. A major European scrap supplier stated their offers to Turkey had already moved to the mid-$360s/mt CFR, adding, “The market looks poised to breach the $370s/mt CFR Turkey levels and beyond.” There are some sales done to India, Pakistan and neighbouring regions from the EU and the US. According to a contact at one Turkish steel producer, “Those sales to the Indian sub-continent would not be enough to compensate for Turkey’s absence in the long run.” The sluggish demand conditions in the Turkish steel market have not changed. Turkey is once again separated from the international market. One source commented, “Although international demand is generally slower nowadays, Turkish mills seriously have little room to play due to lower financial freedom.” Today, Turkish mill Kardemir opened its domestic rebar sales at approximately $556/mt ex-works, excluding VAT, while the producer’s sales are estimated to be around 35,000 mt. Despite the tonnage sold today, market sources report buyers are more interested in the deferred payment opportunity Kardemir provides and point out that there is a big price decrease in wire rod quotations. In list prices today in Turkey, the gap between domestic rebar and wire rod prices was only $5/mt.