Amid a relatively slow week in terms of scrap bookings, Turkey has successfully achieved lower deep sea scrap prices. Prices have declined sharply in one deal from the EU and market sources say that the negative mood in the market is gaining ground.
SteelOrbis has learned that an ex-Netherland deal was closed by a Marmara-based producer for HMS I/II 80:20 scrap at $358/mt CFR, with bonus grade scrap at $378/mt CFR. This price is $9/mt lower than the previous ex-EU booking done last week. Inevitably, buyers’ price ideas for other regions have also moved down after the transaction from Netherlands.
Market sources believe that the above deal has now pushed the workable levels for ex-US HMS I/II 80:20 scrap to $365/mt CFR, meaning ex-Baltic prices should be at $365/mt CFR and slightly lower.
One seller said that the current price level for ex-EU scrap may represent the bottom, adding, “Remember, the last time, these levels became the bottom.” Another seller disagreed, pointing to the softness of import billet offers, stating, “Who can say billet prices will remain firm. They have been moving down for some time and I cannot see a bottom yet.” As SteelOrbis mentioned yesterday, this week most ex-China billet offers are at $500/mt CFR and down to $497-498/mt CFR in some cases, while earlier the offers were at a minimum of $525/mt CFR as an indicative level. Sources expect that the maximum price that Turkey would pay for ex-China billet is around $480-490/mt CFR currently. An official at a major Turkish mill said there are still several scrap offers to Turkey, adding, “There are offers seeking buyers indeed, though the price levels are vague. We expect more deals to be signed for November shipment, even some this week. Buyers’ ideas for ex-US scrap are at around $365/mt CFR.”
Meanwhile, despite the silence observed in the short sea segment, several sources think that the workable levels for ex-Romania HMS I/II 80:20 scrap are now below $350/mt CFR Turkey. A Bulgarian contact said he expects prices to decline towards $340-345/mt CFR Turkey, adding that collection prices for HMS I/II 80:20 scrap are at around $320-325/mt delivered to Bulgarian ports, and commenting, “Each sale at the estimated $340/mt CFR Turkey level means a loss for the seller.”
As of today, October 24, Turkish domestic rebar spot prices have decreased by TRY 200-500/mt ($5-13/mt) as compared to October 21, amid ongoing currency fluctuations and sluggish demand. The workable rebar prices in the Marmara and Izmir regions vary at $620-630/mt ex-works, including prices from Icdas A.S., indicating a decrease of $5/mt on the higher end over the same period, for cash payment only.
