After the sharp decline see in the deep sea scrap prices last Friday, market players are trying to assess whether prices in the segment have finally hit the bottom. As a result, there is sufficient scrap availability to meet demand, while the collection cost in all deep sea selling regions have gone down, market sources say.
According to the sources, the volume of potential supply from the US side is sufficient, while collection prices have decreased by $15-20/mt on average. In addition, domestic scrap purchase prices have fallen by $30-45/mt instead of the expected $20/mt, SteelOrbis understands. However, some players expect scrap accumulation to slow down a bit due to lower collection prices.
In the EU, domestic scrap purchase prices have also decreased, by €20-30/mt, sources say. According to market sources, a European scrap supplier is getting ready to give offers to Turkey at $240/mt CFR for HMS I/II 80:20, while Turkish mills’ price expectations are reported to be closer to $230-235/mt CFR.
The mood in the scrap segment, still being mostly negative, continues to put pressure on steel prices. Currently, rebar export prices from Turkey are estimated at $410-415/mt FOB, while demand remains generally low. Since steel sales are not foreseen to improve much in the near future, Turkish mills may persist in their attempts to get additional discounts for import scrap, SteelOrbis understands.