Deep sea scrap prices in Turkey have continued their downtrend with another ex-US scrap booking widely discussed in the market.
SteelOrbis has learned that a Marmara-based steel producer has concluded the transaction for HMS I/II 80:20 scrap at $471/mt CFR, shredded scrap at $486/mt CFR and bonus scrap at $486/mt CFR. This deal has not been confirmed by the buyer or the seller at the time of publication but is believed to be done by many market players. Previous to this one, most recent ex-US scrap transaction was closed at $475/mt CFR for HMS I/II 80:20 scrap.
The decrease recorded in the ex-US scrap HMS I/II 80:20 scrap prices have reached to 5.61 percent month on month. A similar monthly change is observed in the overall deep sea HMS I/II 80:20 scrap prices by 6.12 percent.
Market players think that mills will continue to exert pressure on deep sea scrap quotations in the current week, aiming for $465/mt CFR Turkey. Some sellers are considering this price to be unworkable and now have retreated from the Turkish market but there are still five to six deep sea scrap offers in the market with sellers seeking opportunities to close deals. Turkey at least needs ten deep sea scrap cargoes for August shipments and its September shipment purchases are close to none.
Having said that, a market player comments on the tonnages bought from Libya and Venezuela, saying that these cargoes are usually not disclosed to the market and there is no way to be sure the tonnage bought from those destinations. Hence it would be safe to say that with the secret deals and the tonnages from such unconventional destinations, sellers are also feeling the pressure of uncertainties.
Meanwhile, after a long break Turkish producer Kardemir opened a billet sale earlier today, July 29, with prices at $677-682/mt ex-works. SteelOrbis has learned that the producer has already sold 14,500 mt of billets and the sales is still open.