With a relatively old deal disclosed to the market today, March 1, ex-US scrap prices have moved further down in Turkey.
SteelOrbis has learned that the booking done by an Izmir-based producer on Wednesday, February 28, was closed at $393.5/mt CFR for HMS I/II 85:15 scrap and at $410.5/mt CFR for shredded scrap. The information indicates that benchmark HMS I/II 80:20 scrap prices from the US have declined another $5/mt for Turkey as compared to the previous ex-US transaction done just one day before.
As SteelOrbis reported early today, negative sentiment in Turkey’s import scrap market persists. Turkish mills are in no rush to buy cargoes, the number of cargoes on the way provide them some time. But the main reason of the recent price fall on the deep sea scrap segment is more seller related. “Basically, there are too many offers in the market and US is exerting a significant pressure on quotations,” a supplier stated. A source from a Turkish mill thinks “These lower priced deals from the US will provide scrap suppliers an edge, they can now ask sub-collectors to lower their prices. Also, it is impacting European suppliers’ collection prices.” A deep sea scrap seller said, “We may be closer to the bottom, $380s/mt CFR Turkey for Europe can be it.” Meanwhile, another source from a Turkish mill believes rebar demand in Turkey has no potential to recover before April, “Market is already ready for Ramadan, no significant restocking activity is seen from the traders’ side.” With the ex-US HMS I/II 80:20 scrap prices moving down to $390/mt CFR, workable levels for the ex-EU cargoes are in the range of $380-385/mt CFR.
Meanwhile, short sea scrap segment is under bigger pressure. Market sources report that Turkish mills are showing little to none interest for small cargoes. Workable levels for short sea HMS I/II 80:20 scrap from Romania are considered to be around $375/mt CFR and below.