Turkey’s import scrap market is once again silent following the deals disclosed late yesterday, May 30. Sources report that the deep sea scrap purchases done yesterday were for late June shipments and no offers for this shipment date are left. There is a rumor of one ex-US cargo offered for this period, but SteelOrbis hears the seller took a step back and is now saying they will have an offer for early July. Since Turkey has not bought a high number of cargoes for shipment in the first half of July, Turkish mills are expected to move to make purchases next week. Their aim will be to secure some of their needs before the Feast of Sacrifice holiday starting on June 16. Some sellers believe the anticipated demand from Turkish mills may cause a slight upward movement in prices, while Turkish mills are resisting this idea citing their lack of steel sales.
SteelOrbis has learned that an ex-US deal was closed by an Izmir-based producer for HMS I/II 80:20 scrap at $380/mt CFR, shredded and bonus grade scrap at $400/mt CFR, for June shipment. As a result, the US origin HMS I/II 80:20 scrap price has moved up by a mere $0.5/mt week on week.
The same producer is reported to have concluded an ex-Netherlands deal with HMS I/II 80:20 scrap at $372.5/mt CFR. Another ex-EU booking has been done by a producer in Marmara, with the cargo consisting of 24,000 mt of HMS I/II 80:20 scrap, 6,000 mt of shredded scrap and 10,000 mt of P&S scrap at the average level of $382/mt CFR. According to this information, HMS I/II 80:20 scrap from Belgium is now at around $372/mt CFR. A third transaction done by another Marmara-based steelmaker was closed with HMS I/II 80:20 scrap standing at $372/mt CFR. Once again, the lower end of prices for the ex-EU benchmark scrap grade is at $372/mt CFR, declining by $1/mt. Subsequently, the market has heard about an additional scrap deal from the EU, specifically the Netherlands, done at $374/mt CFR Izmir for HMS I/II (80:20), which is still in the current range of ex-Europe prices. However, the deal has been denied by the seller.
There is an unconfirmed deal circulating in the Turkish scrap market today, May 31, indicating that an ex-Baltic booking was done by an Iskenderun-based producer at around $375/mt CFR. However, several market players mentioned that this deal may have special circumstances if confirmed. SteelOrbis believes that ex-Baltic HMS I/II 80:20 scrap prices will remain at around $379/mt CFR, more in line with the recent ex-US scrap booking.
Meanwhile, an ex-Romania deal was done at $355/mt CFR, indicating a $5/mt fall on the upper end for this grade. An ex-Italy booking was closed at $368/mt CFR Turkey.
