An ex-EU scrap booking done in Turkey indicates that not much has changed in terms of deep sea scrap prices. While the price in the mentioned deal shows a decline, it is not far from the general price idea.
The origin of the abovementioned cargo is Netherlands, while it was bought by a mill in Iskenderun. The cargo consists of 27,000 mt of HMS I/II 80:20 scrap at $369/mt CFR and 3,000 mt of bonus grade scrap at $394/mt CFR, for prompt shipment. The previous ex-France cargo was priced at $373/mt CFR for the benchmark grade, though SteelOrbis had left its reference prices at $368-373/mt CFR at the time, considering that the gap between ex-US and ex-EU scrap prices was unusually narrow. Therefore, the decline in average ex-EU scrap prices is now $1.5/mt in SteelOrbis’ reference price.
While prices in the local Turkish rebar market have increased, market sources generally state that this move is the result of the depreciation of the Turkish lira against major currencies. Demand shows little improvement, while market players report they are unsure of the future trend and are trying to avoid risks. As SteelOrbis has reported that the price gap between sanctioned Iranian and Russian billet and Asian origin billet has narrowed visibly over the past week in Southeast Asia, with the latter becoming more competitive. In general, the expectations for finished steel are pessimistic and most players are focused on the anticipated price hikes for energy usage. Since there is hardly any support for upward movement, scrap prices are expected to maintain their levels for now.
In terms of alternative markets, trade activity in the import scrap market in Bangladesh has remained moderate, with most deals heard for containerized scrap at relatively stable levels as compared to last week. This week has brought another decrease in import scrap prices in Pakistan, which has resulted in new bookings. Import scrap prices in India have softened amid weak demand as secondary mills have shifted to local sourcing, since there are sufficient imported stocks and also given that the local currency is depreciating to a historical low against the US dollar.