It is observed that Turkish steel mills have reduced their demand for scrap with the approach of the Feast of Sacrifice holiday and due to the lower-than-expected demand they have received from their export markets. Meanwhile, SteelOrbis has been informed that ex-Baltic and ex-US HMS I/II 80:20 scrap bookings concluded in Turkey last weekend were at $294-295/mt CFR Turkish port.
Additionally, SteelOrbis has been informed that US-based scrap suppliers are keeping their offers for HMS I/II 80:20 scrap in the range of $295-305/mt CFR Turkish port as they are concerned that supply may tighten due to expectations of an increase of around $20/mt in scrap collecting costs in North America in August.
On the other hand, market sources report that scrap collecting costs in the Baltic region have increased, and so ex-Baltic HMS I/II 80:20 scrap offers have reached $295-300/mt CFR Turkish port in the current week, with suppliers in the region unwilling to reduce their prices below this range. Meanwhile, according to market sources, European HMS I/II 80:20 scrap offers are currently in the range of $290-295/mt CFR Turkish port, while Turkish buyers are trying to compel suppliers to reduce their prices at the lower end. However, European scrap suppliers are also unwilling to decrease their prices below $290/mt CFR Turkish port. SteelOrbis has been informed that there is tightness in the supply of ex-St. Petersburg Russian scrap cargos and that HMS I/II 80:20 offers from this region to Turkey are expected to be at $300/mt CFR Turkish port due to higher freight charges. However, market sources report that Russian suppliers are maintaining their wait-and-see stance as they prefer not to give offers for now.
It is heard that Turkish mills have continued to conclude deals for small volumes from the Adriatic, while a producer in Turkey’s Marmara region has concluded an ex-Adriatic deal for 4,000 mt of HMS I/II 80:20 scrap at $285/mt CFR Turkish port. In the meantime, SteelOrbis has been informed that Russian suppliers of ex-Black sea scrap are also not giving offers but are standing aside and continuing to monitor the market since they are experiencing difficulties in finding ships from Rostov port due to the wheat season and due to the recent increases in freight costs.
Meanwhile, Turkish steelmakers’ demand for scrap is expected to fall due to production cuts, holidays and maintenance-repair works. Accordingly, Turkish mills are expecting lower scrap quotations as a result of the downward pressure they are exerting on prices, with their current firm bids for HMS I/II 80:20 scrap at $290-295/mt CFR Turkish port, while they have even been asking for lower prices for some cargos. In conclusion, Turkish mills’ bookings since last week have all been concluded at the same price levels since suppliers have not accepted Turkish buyers’ lower firm bids despite the ongoing pressure and due to higher costs. Market players consider that Turkish mills have not completed their scrap purchases for August shipments and they expect them to complete these purchases in the last week of July.