A Canadian scrap seller is back in Turkey’s import scrap market and rumored to have sold three cargoes already. As a result, the supply offered to Turkish import scrap market has increased in a matter of days, has a potential compensating for the lack of ex-US offers as it did before.
SteelOrbis has learned that an Iskenderun-based mill has concluded a deal with the supplier for 17,500 mt of HMS I/II 95:5 scrap $507/mt CFR and 17,500 mt of shredded scrap at $522/mt CFR, for July shipment. According to this information the benchmark HMS I/II 80:20 scrap price is estimated to be $503-504/mt CFR Turkey. The previous ex-Canada deal was disclosed yesterday, June 10, with the benchmark grade price being at $509-510/mt CFR.
The seller is rumored to conclude another sale to Turkey’s Izmir region, though this information was not confirmed by the buyer or the seller at the time of publication. Some market players voiced that the levels of both deals are similar, but no further information was shared.
SteelOrbis also hears that an ex-US cargo is offered to Turkey at around $510/mt CFR, signaling that the mood of US suppliers might have changed. One market player states that there is pressure from Turkish mills for closer to $500/mt levels for ex-US HMS I/II 80:20 scrap. On the other hand, the collection prices in the European market are making it harder for suppliers to be more aggressive while offering scrap to Turkey, and it is also observed that the euro-dollar exchange rate is not helping. Additionally, there is a vehicle shortage in both sides of Atlantic, market sources state, causing freight to increase, similarly to the situation seen in the Russian scrap exports.
SteelOrbis has been informed that the silence in the short sea segment is now ceased, sellers from Bulgaria and Romania are willing to conclude sales to Turkey for HMS I/II 80:20 scrap in the range of $470-480/mt CFR. Market players state that the range is wide because sellers are giving offers based on their positions and the ones in need of cash are offering lower levels. Turkish mills are showing little interest to short sea offers, one contact states.