Two ex-US deals and one ex-Estonia deal have been disclosed in Turkey’s import scrap market today, February 14, though the deals are believed to have been done at the end of last week.
SteelOrbis has learned that a Marmara-based Turkish mill has concluded one of the ex-US bookings with HMS I/II 85:15 scrap standing at $509/mt CFR and bonus grade scrap at $528/mt CFR.
Meanwhile, the other ex-US scrap deal is reported to have been done by an Iskenderun-based producer with HMS I/II 90:10 scrap at $509/mt CFR. Before these two deals, which indicate $504-505/mt CFR for HMS I/II 80:20 scrap, SteelOrbis’ estimations for this grade were in the range of $505-510/mt CFR. Thus, ex-US HMS I/II 80:20 scrap prices have fallen short of initial expectations.
Additionally, a steelmaker in Izmir has bought an ex-Estonia cargo for HMS I/II 80:20 scrap at $505-506/mt CFR and bonus scrap at $525-526/mt CFR, for early April shipment. This deal has not been confirmed but is largely believed by market players to have been done. Previously, SteelOrbis’ ex-Baltic HMS I/II 80:20 scrap price was in the range of $503-507/mt CFR.
Turkish mills have bought most of their deep sea scrap needs. Market players estimate there are seven to eight deals remaining to be done in the rest of February, which provides a good amount of time for the upcoming purchases. Some market players are more optimistic about the future trend of deep sea scrap prices, citing the rises observed in the Far East and the Americas. On the other hand, some expect a sideways movement instead in the coming period. “From now on, a relatively stable trend would be healthier,” a supplier reported. A European seller stated that E3 grade scrap in Germany is at €440/mt DDP, while their most recent sale to France was at €480/mt DDP for E8 grade scrap.
Meanwhile, Nureddin Nebati, Turkey’s treasury and finance minister, has announced a new credit guarantee fund package, totaling TRY 60 billion. Whether the package includes support for the construction sector remains to be seen. The chairmen of the Association of Housing Developers and Investors (Konutder) and the Overseas Real Estate Promotion Association (Gigder) shared with Bloomberg that financial support for the construction sector would benefit Turkey’s economic growth since costs have risen 2.5-fold, making it harder to start new projects.
