Turkey’s deep sea scrap prices have remained relatively stable. However, market sources report that the scrap demand received from Turkish mills has accelerated this week and that price inquiries are livelier. Turkey has not completed its scrap purchases for March shipment yet, in particular for the second half of March.
Scrap supplier sources have stated that the demand received from Turkish mills has accelerated this week. “It is not a surprise. Last week’s standoff showed all players that forcing each other to accept lower bids or higher offers is fruitless. Ramadan will start on March 1. Turkish mills traditionally buy scrap ahead of Ramadan. Besides, they have not completed their purchases for March shipments,” a seller commented. While Turkish mills report they are buying cheap billets, while another source said that the delivery period for those billets is late April or early May. “Turkish mills cannot fill the gaps in their raw material inventories by buying billets for now. Despite the attractive prices received from Asia, they are bound to buy scrap. Four to five major Turkish mills are seeking cargoes today [February 19]. Next week, smaller mills are expected to return to the market. We do not expect scrap prices to decline in the short term,” the source commented.
An ex-Scandinavian deal surfaced in the market late on February 20, reported to be done by an Iskenderun-based producer for 14,000 mt of HMS I/II 80:20 scrap at $358/mt CFR and 12,000 mt of shredded scrap at $378/mt CFR. Accordingly, ex-Baltic price have settled at $357-358/mt CFR.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved up by 0.35 percent week on week. The prices are now 7.2 percent higher month on month in the deep sea segment, with prices being in the range of $355-360/mt CFR.
March scrap pricing in the US Midwest is seen up between $30-40/gt ($30-41/mt) from February settled prices as inventories continue to be reported at low levels at both mills and suppliers, though a few contacts predict some sales could be done at as high as $80/gt ($81/mt) above February settled prices as continued cold weather and equipment-related problems continue to impede the processing and delivery of local scrap, market insiders told SteelOrbis this week.
At this week’s Recycled Material Association (ReMa) Consumer’s Night scrap conference in St. Louis, Missouri, scrap contacts told SteelOrbis that ongoing slow manufacturing activity in the US continues to reduce the amount of available prime busheling scrap. Most expect US scrap pricing to remain strong across all grades, especially if the recent cold weather in the eastern two-thirds of the US continues.
A US East Coast market insider said, “Every year for the past 50 years, we see scrap prices rise during the winter and then decline as spring nears. Right now, for the month of March, US mills are at $40/gt higher in the Midwest for auto-shredded scrap. However on the US East Coast, Turkey is not coming in and setting the market like they used to, with demand and production off, so it is harder to get a handle on monthly pricing.”
After rising by €20-30/mt since January, local scrap prices in Italy have remained largely unchanged over the past week, registering only a €5/mt increase on the upper end for turnings and HMS. Market participants paint a picture in which demand, albeit low, exceeds the supply of raw material.
As far as March is concerned, market participants agree that scrap prices will likely continue to rise gradually, perhaps by €5-10/mt according to one market expert. Producers also agree. One stated, “Supply is scarce, so we have to adjust to scrap dealers’ prices to bring in raw material.” However, producers report that these increases are difficult, if not impossible, to sustain, adding that it is possible that producers will make production halts around Easter to try to maintain their margins.
Last week’s scrap price increases have been confirmed in the local German scrap market following negotiations. Scrap purchase prices of mills have increased by €5-10/mt all over the country, amid low scrap availability and a surprisingly better demand from producers.
Some sources believe that the peak has been reached, and that scrap purchase prices from mills will decrease next month, or at least they will remain stable following the trend of Turkey’s import scrap prices. According to the latest BDSV data, E1 scrap purchase prices in February stood at an average of €272.2/mt ex-warehouse, up €10.9/mt month on month.
As for exports, it seems that scrap yards are still paying €305-310/mt DAP for HMS I/II 80:20, even if there are unconfirmed rumors that the level might be slightly lower.
In Poland, the local scrap market [link] remained silent this week after last week’s sharp rises. Scrap inflows are still slow, producers have concluded their purchases for the month and finished steel demand is not brilliant. Most sources believe that, in this market situation, scrap prices will not change in the next round of purchases.
Scrap prices from export yards have been reported at unchanged levels compared to last week, at €310-320/mt DAP.
The leading Japanese EAF-based steel producer Tokyo Steel has announced new prices for its H2 scrap purchases in the Kansai region, with a rise of JPY 1,000/mt. Despite the increase in the Kansai region, Tokyo Steel’s general range for H2 grade scrap prices has remained at JPY 39,000-42,000/mt ($260-280/mt) depending on the mill, with Nagoya representing the lower end. Shindachi scrap prices of Tokyo Steel have also remained unchanged in the local currency, at JPY 40,500-43,000/mt ($270-287/mt) delivered, up by $7/mt on US dollar basis.
Taiwan’s import scrap market has remained relatively stable over the past week. Despite the narrowing range of offers, actual deal prices have remained unchanged. The stable trend of the import scrap segment has caused the domestic scrap market to move sideways also.
Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have mostly remained at $315/mt CFR, with deals closed at $310/mt this week. Offers shared for Japanese H1/2 (50:50) scrap bulk have also remained relatively stable, in the range of $320-325/mt CFR, with deals for ex-Japan scrap at $320/mt CFR.
Not much has changed in Vietnam’s import scrap market over the past week. Vietnamese mills remain cautious amid lower rebar demand in the market, while most players want to monitor the impacts of US President Trump’s tariffs. Taiwan has kept its scrap purchase prices stable and, with South Korea’s absence from the scrap spot market continuing, there is not much pressure on Vietnam to accept higher prices.
Over the past week, offers for Japanese H2 scrap to Vietnam have remained stable in the range of $315-320/mt CFR. Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have also remained unchanged week on week, at $345-350/mt CFR.