An ex-US scrap deal done towards the end of last week has surfaced in Turkey’s import scrap market and confirmed another price decrease.
SteelOrbis has learned that the ex-US booking was done by a Marmara-based producer towards the end of last week, with HMS I/II 80:20 scrap standing at $480/mt CFR, shredded scrap at $495/mt CFR, bonus grade scrap $500/mt CFR. Prior to this deal, the ex-US HMS I/II 80:20 scrap prices were in the range of $490-495/mt CFR.
The general opinion in the market is that the downtrend of import scrap prices will continue. Scrap sellers are closer to accepting lower levels, while they are trying to cut their collection prices. SteelOrbis has learned that a European scrap seller is collecting HMS I/II 80:20 scrap at €380/mt and HMS I scrap at €400/mt, both delivered to Amsterdam. The scrap flow to export yards is slowing down as domestic procurement quotations are currently €30-40/mt higher in the EU region. Meanwhile, Turkish mills’ idea of deep sea HMS I/II 80:20 scrap is standing at $440-450/mt CFR, market sources state. There may be some suppliers with financial strength that are willing to cut their prices to these levels, though due to collection costs it is not possible to say all sellers will be in a rush to sell at present. Turkey is in need of scrap since it has not been active in deep sea scrap bookings for almost six weeks now. “Much depends on US-based suppliers once again, since collection prices in the EU do not give much room for sellers to reduce their offers to Turkey,” a source commented. More deep sea deals are expected to be done before the current week ends.
Meanwhile, short sea HMS I/II 80:20 scrap offers from Romania and Bulgaria are at around $420-435/mt CFR Turkey, but the downward pressure on short sea scrap is increasing. “Turkish mills are asking much lower prices from short sea sellers as they anticipate another fall in the deep sea segment,” a seller stated. The most recent ex-Israel HMS I/II 75:25 scrap deals were done at $430s/mt CIF Iskenderun, though this level is not workable now.