Turkey’s import scrap quotations have continued their downtrend. The latest deal was done last Friday, with the price slightly lower than in the previous ex-US scrap bookings.
A Marmara-based producer has concluded the latest ex-US scrap booking for 10,000 mt of HMS I/II 90:10 scrap at $372/mt CFR, 18,000 mt of shredded and 2,000 mt of bonus grade scrap at $389/mt CFR. According to this information, the benchmark HMS I/II 80:20 scrap price has declined to $369/mt CFR.
Scrap collection prices in Amsterdam, Belgium and the Netherlands have all decreased to €290/mt DAP. One scrap exporter has reported that scrap flow to its yard at this price is still on the low side. A German sub-collector said that the bids they received are at this level, but a further decline is expected in the coming days. Since European scrap prices remain under downward pressure, scrap flow may recover a little if sub-collectors try to sell some tonnages before a further price decline. October scrap prices in the US Northeast have finally settled. Although it was initially speculated that mills could try to take prices down by $10-20/gt across the board this month, resistance from sellers has kept prices of most grades stable. Meanwhile, market sources report that there are several scrap sellers seeking opportunities to conclude sales to Turkey and that they are more numerous compared to the willing buyers. A scrap supplier said, “Some producers are looking for cargoes to be shipped in the first half of November, but their price ideas are not in line with sellers’ ideas.” One European scrap supplier commented that deep sea scrap quotations may move down further by $5/mt, although their initial expectations for a bottom level at $360/mt CFR Turkey. Another European scrap seller added that some demand is coming out of India, but SteelOrbis considers that the fundamentals are not in favor of scrap suppliers to Turkey. The negative mood in the market persists against the backdrop of ongoing sluggish steel demand. While official domestic rebar prices have been kept stable, it is observed that there is hardly any trading in the market and in actual sales mills are quietly willing to cut their prices. “Even the rumor of lower rebar prices is enough for us to take a step back. We do not see any movement in the earthquake-hit region, even the container towns have not been completed, not to mention a start to actual reconstruction works. With the approaching winter, it is not logical for us to increase our inventories,” a Turkish rebar trader commented today, October 10. The stagnant rebar market means disrupted finances for Turkish mills, which have already been feeling the impact of higher production costs.
Meanwhile, the most recent ex-Romania deals were closed at $340/mt CFR, decreasing by $3/mt on the upper end. Market players believe the next range will be at $335-338/mt CFR. SteelOrbis hears that the downward pressure on short sea scrap remains stronger than that on the deep sea segment.