Having moved down sharply in an ex-US deal, the import scrap market in Turkey has continued its decreasing trend as Turkish mills are still successfully exerting pressure on prices.
SteelOrbis has learned that a Marmara-based Turkish mill has concluded an ex-Sweden deal for HMS I/II 80:20 scrap at $440/mt CFR, shredded scrap at $445/mt CFR and bonus grade scrap at $450/mt CFR, for a total of 25,000 mt of scrap. The information has not been confirmed by the buyer or the seller, but the transaction is believed by most market players to have been actually done. Prior to this deal, SteelOrbis’ estimations for ex-Baltic benchmark HMS I/II 80:20 scrap were at $450/mt CFR Turkey.
According to market sources, Turkish mills are still relaxed as there are tonnages in the market on the deep sea side than initially expected, giving producers room to continue exerting pressure on quotations. There are still offers from the Baltic region and the US to Turkey, SteelOrbis understands. “As Turkish steelmakers have almost completed their purchases for February shipments, they may wait for early February to start buying at full strength for March shipments,” one source stated. Accordingly, Turkish producers may by-pass the uncertainties surrounding the Chinese market ahead of the Chinese New Year on February 12, which is being closely monitored by all players in the market. Meanwhile, German suppliers state that their local collection activities have gained some pace over the past week as small and medium-scale suppliers have been returning to the market with some tonnages on hand. However, the lockdown measures in Germany have been extended until February 14. Additionally, a major European supplier stated that the fundamentals in the international scrap market have not changed during the current downtrend and that prices shall recover in the coming period. The general view in the market is that the future trend of deep sea scrap prices will depend on suppliers’ response to the firm stance of Turkish mills.