While there have been two deep sea deals disclosed to the market, the Turkish government’s move to increase natural gas prices by 50.8 percent for industrial consumption has caused turmoil in the Turkish steel market today, September 1. While Turkish mills are evaluating the situation, some market players state that the additional costs will be around $50/mt. As the local Turkish rebar market is being adjusted, demand is another question.
SteelOrbis has learned that an Iskenderun-based mill bought an ex-UK cargo, with HMS I/II 80:20 scrap at $396/mt CFR, for prompt shipment. This deal is rumoured to be older, and since it is prompt it does not fully represent the market price. SteelOrbis’ ex-EU scrap prices are now at $388-396/mt CFR, with the lower end represented by the previous ex-Netherland booking.
Another deal from Sweden was done by a Marmara-based mill yesterday, August 31. HMS I/II 80:20 scrap in the cargo is at $398/mt CFR and shredded scrap at $413/mt CFR, for October shipment. This price is slightly higher than the previous range at $395-396/mt CFR for Baltic-origin scrap.
Although finished steel prices will be adjusted upwards inevitably after the mentioned rise in costs, this is not expected to help the scrap segment. “This is a matter of costs, and steel demand was already on the low side,” a source commented. SteelOrbis hears that ex-Europe scrap offers to Turkey are now at $390-395/mt CFR, while sellers are also citing their costs. Some sellers believe that prices for deep sea scrap are now standing at $390-400/mt CFR Turkey. The producers continue to show resistance. The local Turkish rebar market as well as the other segments are still evaluating the situation, some are taking their time, halting their offers for now. $710/mt ex-works from producers is already heard in the local rebar market, while yesterday the highest rebar price was $660/mt ex-works. Turkey’s rebar export quotations are now in the range of $700-720/mt FOB.