The import scrap market in Turkey has recently witnessed a sharp drop in prices from the US and the EU as suppliers have finally given in to pressure from buyers.
An Izmir region-based Turkish steel producer has closed a deal for an ex-US cargo with 17,500 mt of HMS I/II 90:10 scrap priced at $261/mt CFR, 6,000 mt of shredded at $263/mt CFR and 6,500 mt of P&S material at $268/mt CFR, SteelOrbis has learned. The lot will be shipped in September. Based on this transaction, market players estimate the current price for HMS I/II 80:20 from the US to be at $258/mt CFR Turkey. As a result, prices have lost $12/mt compared to the previous deal.
Ex-EU scrap prices have followed the general downturn as well. A Marmara region-based Turkish mill has managed to push for $250/mt CFR for 20,000 mt of HMS I/II 80:20, while the previous ex-EU transaction was agreed on at $272.5/mt CFR for the same grade. The cargo will be also shipped in September.
Such a sharp drop in import scrap prices has a negative effect on market sentiment and puts additional pressure on rebar and billet pricing. In particular, ex-Turkey rebar is no available at $430/mt FOB (-$5/mt over the week), but bids are lower than that. The billet market is estimated at not higher than $380/mt FOB at present, but buyers’ expectations are that prices may hit $365/mt FOB in some limited sales, SteelOrbis understands.
The development of the market situation in the finished steel and billet segments will largely depend on the further import scrap trend, which for now is expected to remain negative. “In the market, which has been silent for two weeks, there are some previously offered cargoes which remain unsold. Those may follow the downward trend,” a source commented to SteelOrbis. However, it is worth mentioning that there are still some sellers stating that they are not in a position to close deals at the current price levels.