SteelOrbis reported earlier this week that a slight price increase in Turkey’s scrap market had been confirmed. The cost of collection, and also taking into account the euro-US dollar exchange rate, was leaving almost no margins for sellers to cut their offer prices to Turkey, while Turkish mills’ lack of finished steel sales and their failure to increase their sales prices were forcing them to maintain the current scrap purchase price levels. However, with the new month approaching fast, Turkish mills were showing readiness to negotiate with a slight rise in prices.
In the following days, buyers and sellers in Turkey’s import scrap market found common ground in terms of pricing as the week proceeded. Four new deals surfaced in the market on June 23, reflecting the ongoing stability of prices. While Turkey’s new appetite for scrap observed this week signaled that Turkish mills are not cutting their capacity utilization rates in the short term, market sources still continue to remain cautious. “We do not expect a significant recovery either in Turkey’s scrap demand or in prices,” a seller commented. Another source said the market is stuck in a very narrow range and there is no push either up or down towards a change. “We are going to experience another slow summer, I am afraid,” a third market player reported. “We see that the number of offers and the number of willing buyers are similar now. This also creates a balance in the market,” a source told SteelOrbis on June 25.
As the week ends, the situation has not changed in Turkey’s import scrap market. Turkish mills will now slowly start to buy cargoes to be shipped in August. “There is still time for producers to decide whether they want to curb capacity utilization or not,” a market player commented, adding, “In the end, the scrap price trend will be determined by their willingness to buy.” However, economists are also warning about a potential threat to trade. In Turkey on June 30 a court will hear a case on whether to annul the results of last year’s leadership congress held by Turkey’s main opposition party. While a ruling may not be reached on the first day of the hearing, the outcome could have a positive or negative economic impact, according to experts.
There are some deals closed before the week ends. SteelOrbis has been informed that an Izmir-based producer has concluded an ex-Netherlands booking for HMS I/II 80:20 scrap at $333/mt CFR. An ex-Uk deal was closed by an Iskenderun-based producer at $337/mt CFR for this grade. Hence, SteelOrbis' reference prices for ex-EU/UK scrap has been revised to $333-337/mt CFR.
Meanwhile, an ex-US booking done by an Izmir-based producer has been closed at $345/mt CFR for benchmark HMS I/II 80:20 scrap, same as the previous booking. An ex-Baltic scrap transaction by an Izmir-based mill is closed at $341/mt CFR for the same grade, indicating that ex-Baltic scrap quotations have remained in the range of $341-342/mt CFR.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have remained stable week on week. The prices are now 1.74 percent lower month on month in the deep sea segment, with prices being in the range of $333-345/mt CFR.
Weekly market surveys of SteelOrbis scrap insiders finds most think US scrap pricing for July will settle sideways to potentially higher amid reports that domestic supply appears to be tightening while better demand may emerge from US East Coast export markets for July, scrap insiders told SteelOrbis this week.
A sideways to higher July market would contrast with the recent sideways June scrap market settlement prices compared to May, following the implementation of doubled 50 percent steel tariffs by the US Trump administration on June 4 and earlier reports of limited demand for June export scrap requirements. Reports continue to circulate that US domestic inventories of scrap are growing more limited.
Based on a current sideways to higher July call, Midwest prime busheling scrap in the Ohio Valley may settle at or above the $435-460/gt ($443-468/mt) June settled prices, while shredded may settle at or above $375-380/gt ($381-387/mt). Ohio Valley P&S and HMS grades could settle at or above $361-371/gt ($367-377/mt) and $325-345/gt ($330-387/mt), respectively, scrap insiders said.
The local Italian scrap market has continued to see slow activity this week, but the first signs of a possible price drop in July are emerging. Although scrap prices have remained substantially stable this week, some producers have slightly reduced their purchase prices as they did not need to buy. It is also worth mentioning that new scrap is more abundant in the local Italian market, as demand for these categories is lower compared to old scrap, which is in greater demand due to its greater convenience in terms of pricing.
The German scrap market has showed a slight uptick in June, depending on the region and the purchasing needs of each steel producer, leading to an overall average increase of €11.02/mt, taking into account all scrap qualities. In the meantime, however, there have been no major changes in market fundamentals, and scrap availability remains scarce, meeting moderate demand from steel producers.
The local Polish scrap market has remained almost silent this week. Summer holidays are approaching and international commercial and military tensions are making people extremely cautious. According to SteelOrbis’ information, HMS I reference scrap collection prices to export yards in Poland have remained unchanged in a range of €250-270/mt DAP.
The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap purchase prices by JPY 500/mt in the Tahara region. Market sources report that international demand for Japanese scrap has been declining this week.
As a result of the reduction made in Tahara, the general range of Tokyo Steel’s H2 grade scrap purchase prices has moved down by JPY 500/mt on the upper end to the range of JPY 38,500-41,000/mt ($267-284/mt) depending on the mill. Taking into account the changes in the exchange rates, the dollar-based prices have declined by a mere $1/mt on the lower end and by $5/mt on the upper end as compared to the levels mentioned on June 13.
Import scrap prices in Taiwan have again remained stable during the past week, having moved sideways in the previous week after hitting bottom levels. Market sources report that there are no signs of a recovery in the market despite the stable trend.
Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan are in the range of $295-297/mt CFR, moving down by a mere $1/mt/mt on the upper end. Japanese H1/2 (50:50) scrap bulk cargoes have been offered at $314-325/mt CFR as compared to the $315-323/mt CFR range recorded last week.
Vietnam’s demand for imported scrap has continued to slow down this week. This decline in import scrap demand is interpreted as seasonal and has been reflected slightly in the offers shared with Vietnam.
Over the past week, offers for Japanese H2 scrap to Vietnam have remained stable at $320-325/mt CFR. Meanwhile, ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved down by $5/mt to around $345/mt CFR.
The Tokyo Bay FAS-based prices for H2 grade scrap are still at JPY 41,000/mt ($284/mt), up by $3/mt on dollar basis. The FOB-based export price remains at JPY 42,000/mt ($291/mt) for the grade in question, again up $3/mt, as the Japanese yen appreciated slightly against the US dollar.
In Pakistan, import offers for scrap have seen a modest uptick of at least $5/mt week on week, largely influenced by heightened geopolitical tensions in the Middle East and mounting concerns over rising oil prices. More specifically, this week, offers for ex-Europe/UK shredded scrap in containers have been voiced mainly at $375/mt CFR, against $370/mt CFR last week. According to sources, several deals for at least 3,500 mt in total of shredded scrap from the UK have been signed at $372-375/mt CFR during recent days. However, amid the uncertainty, Pakistani buyers are expected to remain on the sidelines, carefully tracking freight rate movements and awaiting greater policy clarity before proceeding with new bookings. In the meantime, local prices of scrap equivalent to shredded in Pakistan have settled at around PKR 140,000/mt ($493/mt) ex-warehouse, mainly the same as last week. Besides, the tradable level for local 10-12 mm rebar of grade 60 has been heard at PKR 235,000-240,000/mt ($828-846/mt) ex-works, compared to PKR 235,000/mt ($828/mt) ex-works last week.
Bangladesh’s import scrap market has continued to face downward pressure amid ongoing monsoon-related disruptions and subdued demand for finished steel. Buying activity has remained limited, as mills adopt a cautious approach. Meanwhile, import scrap prices have slipped this week in select deals, highlighting buyers’ resistance to the prevailing offer levels. According to sources, most offers for shredded scrap in containers from Australia have been voiced at $370-375/mt CFR, against $375/mt CFR two weeks ago. Besides offers for ex-Australia HMS I/II 80:20 scrap have been heard $355/mt CFR, the same as two weeks ago, though most bids have dropped to $345/mt CFR, according to sources. In the bulk segment, a deal for ex-US scrap, for at least 32,000 mt in total, has been signed at $345/mt for HMS I/II 80:20, at $350/mt CFR for shredded and at $355/mt CFR for bonus. However, offers for ex-US scrap have been reported $5/mt higher than deal prices. Offers for ex-Singapore scrap in bulk have declined as well, by around $5/mt over the past two weeks, with offers for HMS I/II 80:20 scrap standing at $350-355/mt CFR, while offers for HMS I/II 70:30 scrap have been estimated at $345/mt CFR. According to sources, a deal for around 18,000 mt in total of ex-Singapore HMS I/II 80:20 and PNS scrap has been signed at $349/mt CFR and at $362/mt CFR, respectively.