The most recent ex-US scrap deal to Turkey signaled that deep sea prices would not decrease to Turkish mills’ desired levels and this view has been supported by an ex-UK booking disclosed to the market today, June 29.
SteelOrbis has learned that a Marmara-based Turkish producer has concluded a transaction from the UK for a cargo consisting of 45,000 mt of scrap at the average price level of $505.5/mt CFR. There will be a minimum of 15,000 mt of bonus grade and shredded scrap in the cargo, with a $20/mt premium. As a result, the HMS I/II 80:20 scrap price is estimated to be around $498-499/mt CFR. Prior to this deal, European HMS I/II 80:20 scrap quotations were estimated to be $492-497/mt CFR Turkey.
As the month of June is ending, Turkish mills are expected to make a move to start purchasing deep sea cargoes for August shipments. Market players believe that there will be at least 25-30 deep sea transactions for August shipment, while some expect more tonnages to be bought. With the approaching holidays in Turkey, some market players think mills would like to conclude most of their deals in the first half of July. Russia’s decision to impose export duties on semi-finished steel products is expected to impact international scrap prices, while some market players stated that for now Russian sellers are trying to sell some prompt billet cargoes before the duties become effective on August 1. Having said that, currently market players state that Turkish mills are not active in the market in terms of making price inquiries. A market player stated that deep sea scrap prices are expected to be at around $500/mt CFR in the coming deals, “but the longer mills wait, the higher prices will move up”, he added.
Meanwhile, on the short sea scrap side, the previous lower end of $445-450/mt CFR Turkey for HMS I/II 80:20 scrap from Romania and Bulgaria is not considered to be workable for sellers anymore. With the firm stance observed on the deep sea side, market players think that sellers will target $450/mt CFR and above this week, while they may also try to push for $460/mt CFR.
