The downtrend of deep sea scrap prices in Turkey has continued without a break, with an ex-US scrap deal concluded over the weekend signaling a lower level.
SteelOrbis has learned that a Marmara-based producer has concluded a booking from the US for HMS I/II 80:20 scrap at $405/mt CFR, shredded scrap at $410/mt CFR and bonus grade scrap at $415/mt CFR. Some market players state that the cargo will be shipped in late February, though this information was not confirmed by the buyer or the seller at the time of publication. Prior to this deal, the most recent ex-US scrap transaction was closed at $416/mt CFR for HMS I/II 80:20 scrap.
It is also heard that at the end of last week an Izmir-based steelmaker bought an ex-Venezuela cargo for HMS I/II 80:20 scrap at $400/mt CFR, for mid-February shipment. Market players believe that this deal cannot be interpreted as an accurate signal for Turkey’s import scrap market, as Venezuelan cargoes are mostly priced lower than the actual market price levels.
According to market sources, buyers are still seeking lower price levels for prime grade scrap. Meanwhile, it is heard that there are still offers from the US to Turkey. One market player has stated that the US-based sellers are aggressive. On the EU side, suppliers believe prices have room to decrease further, though they are not sure if they will indicate a similar fall as seen on the US side. “It would all depend on how firm EU-based suppliers can stand,” one source from the region said. Meanwhile, part of the market thinks that the decreasing trend of deep sea scrap prices is causing prices to get closer to the levels which would be attractive for Chinese buyers. Some even believe that the bottom will be determined by China if prices go down at the current pace. On the other hand, some Turkish mills are relaxed about the issue, saying that sales to China will not happen overnight.
