Following the ex-Germany scrap booking to Turkey reported earlier this week at $343/mt CFR, an ex-US transaction done yesterday, May 27, has also supported the idea that deep sea scrap prices in Turkey are now stable.
An Iskenderun-based Turkish steel producer has concluded the deal from the US, with the HMS I/II 80:20 scrap price standing at $347/mt CFR, stable as compared to the previous levels. Meanwhile, a rumor of an ex-Baltic deal is also circulating in the market at the same price, though the buyer has still not been confirmed.
A source has reported that a US-based scrap seller received a bid from Turkey at around $345/mt CFR yesterday, but did not accept the lower price. As a result, US-based sellers give the impression that they are not ready to reduce their prices for Turkey. “Turkish mills are inclined to close some deals for scrap to be shipped in the first half of July before the Feast of Sacrifice holiday starts on June 6,” another source said. Although Turkey’s import scrap market remains stable this week, some market sources believe that the downward pressure on prices is increasing. “The weaker euro will exert pressure on European scrap suppliers,” a source from the sellers’ side commented today. The softening of ex-China billet offers has not helped sentiments.
Meanwhile, turning to the local rebar market in Turkey, domestic producer Kardemir opened its rebar sales at TRY 21,585/mt ($554/mt), excluding VAT, today, May 28. Sources report the mill has succeeded in selling around 11,500 mt so far due to its advantageous payment terms, while its price indicated an increase of TRY 35/mt, while down by only $2/mt on US dollar basis, compared to its previous price list dated Wednesday, May 14.