With two new deals disclosed to the market today, December 1, import scrap prices in Turkey have decreased sharply.
SteelOrbis has learned that a Marmara-based mill has bought an ex-US cargo with HMS I/II 80:20 scrap standing at $485/mt CFR, for January shipment. Half of the cargo is composed of shredded scrap at $505/mt CFR, SteelOrbis understands. The total tonnage is rumored to be 45,000 mt. Prior to this deal, workable ex-US HMS I/II 80:20 scrap prices were estimated to be around $495/mt CFR.
Meanwhile, another booking by an Iskenderun-based producer has been done from the Baltic region, with HMS I/II 80:20 scrap at $480/mt and bonus grade scrap at $500/mt CFR. Prior to this transaction, the workable levels for ex-Baltic HMS I/II 80:20 scrap were forecast in the range of $491-492/mt CFR.
With deep sea scrap quotations declining more than initially expected in these deals, lower prices are now named by several market players for future bookings. One scrap seller stated, "This is more than we expected and will probably put further pressure on quotations." Another source commented that Turkish mills may have the opportunity to lower their finished steel prices as well and attract the attention of domestic buyers at least. On the other hand, one producer stated that several mills are voicing their plans to initiate maintenance works in the second half of January. "This can ease the pressure on deep sea scrap prices as Turkey would not need its traditional monthly tonnages," the source commented. There are no official announcements about maintenance works yet except for Koç Metalürji. Having said that, at the SteelOrbis New Horizons conference held today in Istanbul, attendees commented that there is a global trend to secure scrap supplies and hence Turkey may need to find alternative sources or other ways to produce steel - particularly in line with green production targets.