Turkey’s most recent import scrap deal done on Friday, July 10, indicates a sharp fall for the ex-Baltic price index, though SteelOrbis has learned that the cargo was for very prompt shipment. While negative sentiments continue to be observed in Turkey’s import scrap market, more European sellers have started to announce their holidays, and that they will be out of the market for at least two weeks, while there is some revival of scrap demand from Turkey.
The deal in question was done from Poland by a mill in Turkey’s Marmara region, for HMS I/II 80:20 scrap at $363/mt CFR. The total tonnage of the cargo is reported to be 25,000 mt. Since the cargo is for very prompt shipment, SteelOrbis has revised its ex-Baltic price index to $363-368/mt CFR, leaving some margin on the upper end for cargoes that are not prompt.
European scrap sellers seem to be relaxed after selling a part of their inventories to Turkey during June. Currently, their cost structure indicates that lower offers to Turkey are unlikely in the coming period, while the impact of the holidays throughout the EU will be felt not only in production operations but also on the scrap collection side. Negotiations for the US domestic scrap market in July began on Wednesday last week, with some confirmed sales of prime grades, P&S 5ft and machine shop turnings (MST) at sideways in the Midwest. Some of the prominent mills in the region are trying to push down HMS I by $10/gt as was projected in past weeks; this is due to reportedly robust supply levels and a weak export market on both coasts. Some mills are even trying to purchase shredded down $10/gt from June settled prices, but are encountering even more resistance, as some sales for the grade have already been reported at sideways.
According to sources, on July 13, the overall workable rebar prices for cash payment from mills in the Marmara and Izmir regions are at around $566-580/mt ex-works, down by $1/mt on the lower end compared to July 9. Prices have generally stabilized in the global billet market, with only a few outlets posting some further declines, having a rather negative outlook. However, generally, positive signals from China have managed to pause the continuous downtrend. Even though low seasonal demand is still observed, high raw material prices in China and production cuts at some Chinese mills have prevented billet prices from recording further declines. The SteelOrbis reference price for ex-China billet settled at $455-465/mt FOB on Friday, July 10.
