In late May, following the $30/mt decline in US domestic scrap prices, US-based scrap suppliers focused on the export market, where they caused an increase in pressure from the supply side, thereby expediting the downward trend of import scrap prices in Turkey after the end-of-Ramadan holiday.
The decrease in import HMS I/II 80:20 scrap prices in Turkey from $313/mt CFR to $276/mt CFR within a short interval also created lower price expectations among finished steel buyers. Accordingly, demand in Turkish billet and rebar exporters’ target markets has been either quiet or at low levels.
The easier conditions for scrap collection due to improved weather have resulted in a high volume of scrap supplies especially in the deep sea market, while Turkey met most of its scrap needs for July shipment from deep sea suppliers.
In the Turkish scrap market, short sea and ex-Baltic scrap suppliers are staying on the sidelines and adopting a quiet stance towards deep sea scrap suppliers, who are making aggressive price offers. Meanwhile, European suppliers are waiting for the upward movement of deep sea scrap prices to lose momentum and have directed their sales to other markets. It is heard that they have sent some scrap cargoes to Egypt recently.
SteelOrbis has also been informed that a few US-based scrap sellers have concluded deals in the current week, but the details of these bookings have not been heard. It has also been reported that US scrap sellers are seeking ways to increase their export prices amid higher demand from producers, but they have been forced to continue concluding sales in the range of $276-278/mt CFR with Turkish mills refusing higher price offers.