Another ex-US scrap booking has been concluded in Turkey, indicating a stable price trend.
A Marmara-based mill has bought the cargo, with the prices of HMS I/II 80:20 and shredded scrap at $286/mt CFR and $291/mt CFR, respectively. The tonnages have not been disclosed but market players state that the cargo is split evenly between the two scrap grades. However, the deal has not been confirmed by the buyer or seller at the time of publication. Prior to this transaction SteelOrbis’ daily prices for US origin HMS I/II 80:20 scrap were in the range of $285-287/mt CFR Turkey.
Meanwhile, US-based sources’ early expectations are pointing to a decrease in their domestic scrap market for the November buy-cycle. However, it is believed that such a possible downtrend would benefit more the larger players - and that the smaller actors would continue to pay higher quotations. Also, East Coast exporters have reduced their dock prices by $10/mt over the past week. The support exerted by high domestic flat steel prices on the local US scrap market may come to a halt as the high numbers in the flats segment are believed to be artificial.
Some market sources state that deep sea suppliers are now giving quotations which are approximately $5/mt higher, while others believe prices will maintain their sideways movement until Turkish mills decide to accelerate their purchases. Reports of another sale of Turkish rebar, totaling 55,000 mt, to Hong Kong at $437/mt FOB for late January shipment have had a positive impact on sentiment. This news arrived after Turkey’s previous sales to the US and Hong Kong. However, activity in the local Turkish rebar market remains very quiet, while demand is expected to be slow from now on amid the approach of the winter season, according to some sources, though they also state that this year has been far from the traditional situation due to the spread of Covid-19. The local Turkish wire rod market is better, with mills mainly offering for December delivery and some even for January. Lastly, the ongoing EU investigation on ex-Turkey HRC offers is already taking a toll on imports from Turkey, as retroactive temporary measures could be applied from mid-October onwards.