Following the silence observed in Turkey’s import scrap market during the week-long Feast of Sacrifice holiday between the period of July 16-25, the market is still not active.
SteelOrbis observes that there are offers from supplier regions to Turkey, while buyers are still in no rush to conclude deep or short sea scrap purchases. Some producers state that they are receiving offers at $470-480/mt CFR Turkey for deep sea HMS I/II 80:20 scrap, the lower end representing the ex-EU offers while the upper end is voiced for ex-US or ex-Baltic scrap. A source usually sells from the US says that their estimation for ex-US HMS I/II 80:20 scrap is in the range of $470-480/mt CFR in the next round, though prices closer to $480s/mt are considered harder to achieve under the current circumstances. On the other hand, another source states that next ex-US and ex-Baltic scrap deals are more likely to be closed in the range of $475-480/mt CFR Turkey for benchmark HMS I/II 80:20 scrap. A market player states that “the unusual silence during the holiday was a signal that suppliers are not bending to buyers’ demands for now” but added that one shall wait and see the next week. A European seller states that higher than $480s/mt CFR to Turkey for deep sea scrap is not possible and his expectation for ex-EU HMS I/II 80:20 scrap is $465-470/mt CFR.
Short sea scrap segment is also quiet, sellers are waiting for a signal from the deep sea side. Buyers are showing little interest to short sea cargoes, SteelOrbis understands, and when they do they ask for lower levels.
Meanwhile, the local Turkish finished steel market is still somewhat in the holiday mood, some players have extended their holidays to this week. Some small tonnages of rebar in Turkey’s Izmir region have changed hands today at around $710/mt ex-works, market players state. Having said that, it is observed that Turkish producers are waiting to see a clearer trend for their finished steel sales both to export and domestic markets before concluding new scrap deals. The second half of the current week is expected to be livelier in terms of scrap trading.