Following the presidential and parliamentary elections held on May 14, Turkey’s import scrap market has started the week with an ex-Scandinavian booking. While market players think the uncertainties affecting the market have eased significantly after the first round of elections, Turkey will hold the second round of the presidential election on May 28.
SteelOrbis has learned that a Marmara-based mill has concluded the deal in question from Sweden for HMS I/II 80:20 scrap at $374/mt CFR, shredded and bonus grade scrap at $394/mt CFR and busheling scrap at $399/mt CFR. The previous ex-Baltic deal was also closed at $374/mt CFR.
Due to the unwillingness of short sea scrap suppliers, HMS I/II 80:20 scrap prices from Romania are now estimated to be in the range of $350-355/mt CFR, up $4.5/mt since Friday, May 12. Sellers are aiming for higher levels, though buyers are in no rush to accept the new levels.
Import scrap demand in Turkey continues to be seen this week. SteelOrbis hears that there are few offers in the market from the sellers’ side. Although sellers are voicing higher offer prices - up approximately $5/mt - buyers are not inclined to accept these new levels. On the other hand, scrap suppliers say their collection prices need to be increased. A European seller stated, “Sub-collectors are willing to wait instead of selling material to export yards at €295-300/mt DAP.” For now, the sideways movement of import scrap prices in Turkey is expected to continue. Before the election, it was observed that high tonnages of rebar had changed hands in Turkey. Since the Turkish lira-US dollar exchange rate has not changed drastically since the elections, traders in the local market are trying to sell some material. One scrap supplier commented, “Turkish mills cannot sell rebar before traders’ stocks are reduced.” Some Turkish rebar traders believe that local rebar prices should move down to $630s/mt ex-works in the coming week because “the margin between scrap and rebar is too high.” However, earlier today, May 17, Turkey’s Kardemir issued its rebar price at TRY 13,263/mt ($671/mt) ex-works, excluding VAT. The mill's rebar price indicated a TRY 617/mt increase ($53/mt) compared to March 30. The mill succeeded in selling over 30,000 mt, SteelOrbis has heard by the time of publication, as its price was close to the lower end of the workable rebar price range in the Marmara and Izmir regions, which varies at TRY 15,400-15,940/mt ex-works ($652-685/mt) ex-works today. Meanwhile, a contract for 30,000 mt of ex-UAE billet was signed at $545/mt CFR Izmir for June shipment late last week. In general, the mood in the Turkish billet market is still mainly negative as demand has been very sporadic and buyers have been negotiating only at low levels.