An additional tonnage to an ex-US scrap cargo has been disclosed in Turkey’s import scrap market today, July 12, following the latest transaction from the EU which indicated a decrease in quotations.
SteelOrbis has learned that an US-based seller has concluded the deal with a Marmara-based Turkish steel producer for 7,000 mt of HMS I/II 80:20 scrap at $493/mt CFR and 7,000 mt of shredded scrap at $508/mt CFR. This cargo is an addition to the seller’s previous deal disclosed to the market on June 16, with HMS I/II 80:20 scrap bought at $500/mt CFR. The ongoing tight availability in the ship transportation segment has led the seller to add the tonnage to the previous order. However, despite the freight advantage provided by the additional tonnage, most market players believe the price of this new tonnage can be considered to be another decrease in the ex-US HMS I/II 80:20 scrap price. The previous deals from the US were closed at $496-498/mt CFR for benchmark HMS I/II 80:20 scrap.
As a result, sentiment in Turkey’s import scrap market has weakened. As of today, the workable levels for benchmark grade scrap from the US and the Baltic region are considered to be in the range of $490-495/mt CFR, while levels of $480-490/mt CFR are more likely to be seen in the next ex-Europe bookings. One market player even stated that US-based suppliers are willing to sell HMS I/II 80:20 scrap at around $490/mt CFR Turkey. Price inquiries in the deep sea segment have also slowed down, SteelOrbis understands. The current week is expected to be silent in terms of new deep sea scrap bookings, with some sources stating the possibility of Turkish mills waiting until the end of the holidays (July 15-23) to buy more cargoes for August shipments.
Meanwhile, the local Turkish rebar market is slowly entering into the holiday mood. Market players state that trading in the local market is sluggish and the only ongoing projects are the already started ones, with no new projects. Demand in the local rebar market is expected to come to a near halt during the holidays if the Turkish lira-US dollar exchange rate does not show a significant change in the coming days. The Turkish Central Bank will announce its new interest rates on Wednesday, July 14.
