The gap between deep sea prime grade and short sea benchmark scrap prices for Turkey has increased to higher-than-traditional levels.
SteelOrbis has learned that an ex-Baltic deal was concluded last week by a Marmara-based mill for 10,000 mt of HMS I/II 80:20 scrap at $430/mt CFR and 20,000 mt of shredded scrap at $435/mt CFR. The most recent ex-Baltic deal prior to the one in question which was also concluded at the same period was closed at $435/mt CFR Turkey for the benchmark HMS I/II 80:20 scrap.
Meanwhile, in the current week deals from the Adriatic region and Romania have been closed in the range of $385-390/mt CFR Marmara. It is also heard that some Russian suppliers have been offering $395-400/mt CFR Turkey for A3 grade scrap. Accordingly, the gap between short sea HMS I/II 80:20 scrap and deep sea scrap quotations for Turkey has widened, though market sources state that short sea suppliers are not willing to cut prices any further.
In both segments, demand is still sluggish as negative sentiment prevails. SteelOrbis’ estimation for deep sea prime grade scrap is now in the range of $425-430mt CFR Turkey. On the other hand, the Turkish Central Bank’s announcement of a 200 base point rise in interest rates provided some clarity for the local Turkish rebar market. SteelOrbis has learned that a mill in Turkey’s Izmir region has sold approximately 30,000-40,000 mt of rebar to the domestic market at around $610/mt ex-works, while another Izmir-based producer has also sold approximately 15,000 mt of rebar locally at $615/mt ex-works. Also, a Marmara-based steelmaker is rumored to have concluded a 50,000 mt rebar sale to Asia at $655/mt CFR. There has been no confirmation regarding the destination, and sources believe it may have been concluded to Singapore taking into account that in this case the FOB base level would be netting back to $620-625/mt FOB. These sales have been received as good signs as the silence in the rebar market has been taking its toll on the scrap market for a while now.