Four deep sea scrap deals have been disclosed in Turkey’s import scrap market today, August 3, all signaling lower levels for scrap from the US and the Baltic region.
SteelOrbis has learned that a Marmara-based Turkish producer concluded an ex-US scrap deal yesterday, August 2, for HMS I/II 80:20 scrap at $464/mt CFR, and shredded and bonus grade scrap at $479/mt CFR, for September shipment. The same mill is rumored to have bought another ex-US cargo with HMS I/II 80:20 scrap, shredded and bonus grades standing at $463/mt CFR, 478/mt CFR and $478/mt CFR, respectively, for September shipment. Prior to these cargoes, US origin HMS I/II 80:20 scrap was standing at $471/mt CFR.
Meanwhile, the same Marmara-based steelmaker concluded an ex-Sweden deal at the beginning of the current week for HMS I/II 80:20 scrap at $464/mt CFR, shredded scrap at $479/mt CFR and bonus grade scrap at $479/mt CFR, for early September shipment. Prior to this booking, ex-Baltic HMS I/II 80:20 scrap prices were standing at $469/mt CFR.
Also, an older deal from St. Petersburg has been disclosed today. This booking was done by an Izmir-based producer for HMS I/II 80:20 scrap at $471/mt CFR. This information has not been confirmed by the buyer or seller and since there was an ex-St. Petersburg deal done late last week by MMK Metallurgy at $469/mt CFR, the price in this older deal is considered to be irrelevant now.
US suppliers have reported that they have few cargoes for shipment in the first half of September, while some have even stated that buyers shall not expect many cargoes from the US for the second half of the month. Meanwhile, as SteelOrbis reported previously, the Russian government has given 30 extra days for cargoes to leave ports that had already passed through customs with a letter of declaration before the end of July, so as not to be subject to the new export duty. Market sources from the region report that the duty is paid in cash and that not everyone can afford it. With the ex-US and ex-Baltic scrap quotations decreasing to $463-464/mt CFR Turkey, estimations for European HMS I/II 80:20 scrap prices are at $455-460/mt CFR, down from $460/mt CFR Turkey recorded in the last deal confirmed. Most market players believe that prices are close to hitting the bottom and that levels around $450/mt CFR are expected to mark the end of the decreasing trend. Meanwhile, much depends on the trend observed on the Turkish finished steel side. In the local Turkish rebar market, prices have continued to fall since the beginning of the current week, and market players expect further decreases in Turkish mills’ prices in the coming days.