As the mood has changed in Turkey’s import scrap market, both the short sea and deep sea segments are observed to be silent, with the traditional short sea sellers in particular waiting for a signal from the deep sea side.
Late yesterday, January 14, two deals - surprising in terms of price levels - made by an Iskenderun-based Turkish steelmaker were disclosed to the market. One of the deals was heard to be from France for a small tonnage of HMS I/II 80:20 scrap standing at $447/mt CFR Turkey, while the other is rumored to be from Greece for a cargo consisting of shredded and P&S grade scrap at the average level of $442/mt CFR Turkey, again a small volume, some state approximately 5,000 mt in total. Most market players state that these transactions cannot be considered as indicators for the ex-EU deep sea prime grade scrap market.
On the other hand, short sea suppliers such as Bulgaria and Romania are quiet. Although a correction in prices from these destinations is also expected, for now market players are waiting to see how the deep sea segment will trend. As regards Russia, “everyone wants to ship before the duties. Material availability is scarce, plus the winter conditions, etc.,” a local source said.
Meanwhile, an ex-Baltic deal has been mentioned widely in the market, rumored to have been concluded to Turkey’s Black Sea region at the average price level of $465/mt CFR. However, the details of this deal have not been disclosed yet and no confirmation has been given by the parties at the time of publication.
In general, market sources believe that next week will be critical for the price trend as today Turkey’s import scrap market is closing a relatively silent week on both the deep and short sea sides. Both sellers and buyers are maintaining a cautious stance for the time being. In the US, local scrap prices have indicated a $10/mt decrease for shredded scrap as compared to the beginning of the month and are likely to decline some more, according to market players. One European seller stated that the first dip in prices may be to around $465/mt CFR Turkey for HMS I/II 80:20 scrap. Meanwhile, a weakening is expected in Turkish flats steel prices and there are competitive offers from China in the market. It is known that flat steel, wire rod and profile prices have long been providing and still are providing the biggest support for the scrap market. The finished steel demand received from Far East markets is lower, SteelOrbis understands. While almost all sources agree that a bit of stability would be healthy for the market, a clearer picture for the future price trend in the import scrap market in Turkey may be seen at the beginning of next week.