Several import steel scrap deals to Turkey have been disclosed in the market after the recent SteelOrbis-IREPAS meeting in Dusseldorf, with players trying to understands whether the prices have hit the bottom or not just yet.
Sources report that an Izmir region-based mill has closed two scrap purchase deals with the US. One sale was concluded at $228/mt CFR for HMS I/II 95:5 and at $232/mt CFR for shredded. Based on the deal, the price of HMS I/II 80:20 scrap is estimated at $225/mt CFR. “Since this is not the regular supplier, we cannot include it is the benchmark price,” a trader noted. In another ex-US transaction to the mill, HMS I/II 80:20 was purchased at $226/mt CFR and shredded at $231/mt CFR, for October shipment.
In addition, two more deals are being discussed in the market concluded to an Iskenderun-based Turkish mill, again from the US. The first cargo includes 15,000 mt of HMS I/II 80:20 scrap at $228/mt CFR, 15,000 mt of shredded at $233/mt CFR and 2,000 mt of P&S grade at $238/mt CFR. The second deal was booked from a different US-based supplier and consisted of 23,000 mt at HMS I/II 80:20 scrap at $227/mt CFR, 15,000 mt of shredded scrap at $232/mt CFR and 2,000 mt of P&S grade scrap at $237/mt CFR. “I don’t think we can call this a rebound, but it is showing that the demand at this level is increasing,” a trader mentioned.
Deals from the EU have been also disclosed to the market. Belgium has sold 15,000 mt of HMS I/II 75:25 at $220/mt CFR and 10,000 mt of shredded scrap at $230/mt CFR to Iskenderun. The same producer has reportedly purchased 22,000 mt of HMS I/II 80:20 at $220/mt CFR, for October shipment.
Although many scrap transactions are being discussed, the market still lacks clarity, with some sources expecting a further slide, while some are hopeful that the market is close to the bottom. The optimistic side of the market believes that Turkey may reveal somewhat stronger demand for scrap next week, which would result in some resistance from sellers to go below current levels. On the other hand, market players still consider scrap availability in the market to be rather high, partly as some Baltic suppliers have been refraning from activity. The scrap trend is still largely dependent on steel sales as Turkish mills claim they will restock raw materials after they sell some steel products, SteelOrbis understands.