Turkey has accepted slight price increases in deep sea scrap deals concluded over the past week. Despite the initial hopes for US-Iran negotiations, the lack of a concrete result caused scrap prices to remain firm, boosting sellers’ positions.
SteelOrbis has learned that an ex-US cargo was bought by an Iskenderun-based steel producer with HMS I/II 80:20 scrap at $401/mt CFR, pushing up the ex-US scrap price by just $1/mt week on week. This cargo is for prompt shipment, SteelOrbis understands. Another rumor indicates that an Izmir-based steelmaker has concluded another ex-US deal with the HMS I/II 80:20 scrap price standing at $401.5/mt CFR. Sources report that offers received from the US remain in the range of $405-407/mt CFR. “Turkish mills are showing interest in paying in the range of $400-402/mt CFR for now,” a source selling scrap from the US commented today, April 17.
Two other deals for ex-UK/EU scrap indicate that HMS I/II 80:20 scrap from Europe has remained in the range of $395-397/mt CFR. This information has not been confirmed by the time of publication, but the prices are stable compared to the previous bookings. As a result, SteelOrbis’ reference prices for ex-UK/EU scrap have remained at $395-396.5/mt CFR, with ex-Baltic prices remaining at $398-399/mt CFR.
Price stability is the general impression in Turkey’s import scrap market. Sources from Turkish mills say there are few offers in the market, while sellers state that their phones are ringing, reflecting the demand from Turkish mills. “I believe some mills are trying to secure tonnages before IREPAS,” a source at a Turkish mill said. While sellers are not convinced higher levels can be achieved, most of them think that there is no room for a decline either. “Demand will remain firm as Turkish mills still need cargoes for May shipment. They can try booking them during IREPAS or the week after IREPAS,” a US scrap seller added. The international scrap market is trying to find a balance since uncertainties persist in the market. Sea freight is not declining. On the contrary, some sources believe it is set to move up once again due to the oil crisis. Collection prices in the EU and the US remain high, while sellers are trying to secure tonnages to meet their previous commitments. On the other hand, Turkish mills’ steel sales are underperforming, with some price corrections observed this week in actual rebar deals. “My concern is the lack of exports. While there are proper numbers from mills to export markets, the tonnages are not enough,” a scrap supplier said. For now, SteelOrbis believes deep sea scrap prices have limited potential to move up, though all prices depend on the individual positions of Turkish mills.
