Sentiment has gradually worsened in Turkey’s import scrap market. While no fresh deals have been reported from key supplying destinations, the estimated workable levels go below the prices fixed in the latest transactions.
In particular, the HMS I/II 80:20 workable levels are mainly seen by market players at around $275/mt CFR for ex-US cargoes, versus a $280/mt CFR price reported on last Friday. For ex-EU and ex-Baltic scrap, sources expect prices closer to $270-273/mt CFR levels. In the short sea segment, the workable level is estimated at $265/mt CFR and slightly above, versus $268-272/mt CFR fixed in deals last week. In fact, some sources say a minor deal from Romania has already been closed at this level recently. “I think we are already $5-6/mt below the last week’s levels,” a scrap trader told SteelOrbis. In the case of ex-Rostov cargoes, the suppliers are more bullish, with the price idea for A3 grade at $270-275/mt CFR, SteelOrbis has learned.
Turkish mills’ resistance to new bookings as they have restocked fairly sufficient volumes for March shipment is among the key reasons for the weaker price sentiment. In addition, there are some concerns regarding Turkey’s local rebar business activity in the coming weeks due to the Syrian situation and the consequent weakening of the Turkish lira, SteelOrbis understands.
Most sources believe that the next 10 days will be quiet in terms of scrap transactions. According to some estimations, Turkish mills have purchased over 35 deep sea scrap cargoes for March shipments, while the expected number of lots to be booked for April is around 30. “For now there is no rush for them to buy for April shipments. It is time to wait for a clearer market,” a source believes.