Turkey’s import scrap prices for European origin scrap has remained stable with the new deal disclosed to the market today, August 25.
SteelOrbis has learned that an Iskenderun-based mill has bought an ex-Belgium cargo consisting of 22,500 mt of HMS I/II 80:20 scrap and 12,500 mt of bonus grade scrap at the average level of $450/mt CFR, for prompt shipment. According to the information on hand, the benchmark HMS I/II 80:20 scrap quotation in the cargo is estimated to be at $443-444/mt CFR, while HMS I/II 80:20 scrap prices in the previous ex-Belgium deal to Turkey was estimated at $443/mt CFR.
Also an old ex-Baltic deal was disclosed to the market this week with the HMS I/II 80:20 scrap price being at $451/mt CFR İzmir. This booking was done before the ex-US transaction done by an Iskenderun-based producer with benchmark price at $450/mt CFR. Therefore SteelOrbis’ estimations for ex-Baltic benchmark scrap price will remain at $445-450/mt CFR.
SteelOrbis observes that the number of offers in Turkey’s import scrap market is not high, hence are not exerting pressure on prices anymore. Several sources believe the decreasing trend of import scrap quotations in Turkey has been curbed since sellers are not aggressive lately. Also, Turkish mills need for deep sea scrap cargoes (September shipments) has also declined. Turkey has started the month with at least 7-8 cargoes bought in July, and added 20 confirmed deals to this number in August. Hence, the total deep sea cargoes for September shipment has reached to at least 27-28, with the secret deals this number shall be around 30-32. Two major suppliers in the EU states that their local sales prices are higher as compared to exports and profit margins are better. While everyone agrees that the HMS I/II 80:20 scrap should be sold abroad, particularly to Turkey, the supply of higher grades is once again becoming an issue.
On the short sea segment, a cargo from Romania to Turkey’s Marmara region has been sold for HMS I/II 80:20 scrap at $420/mt CFR at the end of last week. The price level has remained unchanged this week as the number of cargoes is not that high. “While Turkish mills are seeking high grade material, their bids are not workable. Our collection prices do not let us settle for those bids,” a seller states.