A Germany-based scrap seller has traded a full HMS I/II 80:20 cargo to a Turkish buyer from the Izmir region and achieved a price of $455/mt CFR. Taking into account that this price level is at the higher end of the previously estimated range for ex-EU scrap, a lot of market players believe that import scrap prices in Turkey have indeed hit the bottom. Still, some sources assume that, since the deal was closed by a buyer, who is purchasing scrap for its new and only electric-arc furnace and may be a bit behind in restocking, it may have been under pressure to accept a slightly higher price than the general market level.
As a result, in the coming days the situation will be watched closely and the prices will move depending on buying activity. Some sources assume that, if a lot of mills enter the market to buy at the same time, the prices for scrap may increase. But if they enter slowly, the market may see certain stabilization. “I do not think Turkey will buy the usual number [of scrap cargoes] for June if the finished product demand will not be stronger. There should be around 20-25 cargoes to be booked,” a scrap seller told SteelOrbis. As for finished steel sales, business activity in the longs sector has been weak, putting pressure on prices. In the flats segment, another decrease has been seen this week for hot rolled coil, but some market players are hopeful that the recently imposed export tax in India may help stabilize the situation.
In the short sea scrap segment, the HMS I/II 80:20 offers are standing at $415/mt CFR, up from $390/mt CFR sales fixed last week. In addition, the prices from Italian suppliers for the same grade have been reported at $445-450/mt CFR.
