An older deal from last week has surfaced in Turkey’s import scrap market, with the price observed to be in line with SteelOrbis’ expectations. In general, market sources think that it is time for Turkish mills to accelerate their inquiries as May is a short month for Turkey due to consecutive holidays, on May 19 and a longer one on May 27-30.
SteelOrbis has learned that cargo in question was sold from France late last week to an Izmir-based steel producer with HMS I/II 80:20 scrap at $408/mt CFR and shredded and bonus grades at $433/mt CFR, for June shipment. This price represents the upper end of SteelOrbis’ reference prices for ex-UK/EU scrap which have remained stable. The price in the deal is considered to be in line with the previous ex-Finland deal done by a Black Sea region-based Turkish steel producer late last week for HMS I/II 80:20 scrap at $413/mt CFR, given the higher freight rate to this region.
Collection prices in the EU remain stable, while sub-collectors indicate that the €295-300/mt DAP range is workable for them. The appreciation of the euro and the continuing high levels of freight and insurance costs are influencing prices on CFR Turkey basis, providing support for offer prices. Sources report that the local EU scrap market is set to move up slightly during the May buy-cycle. The local US scrap market has also given signals of a $20/mt increase for busheling grades but is signaling stability for the other scrap qualities.
“Turkey still needs to buy 20-25 deep sea cargoes to be shipped in June. Only one producer has finished its procurements for June and has started to look for July,” a European scrap seller said today, May 12. “Deep sea scrap prices are firm despite the silence in the market. May is a short month and we [Turkish mills] will buy a lot of cargoes yet. I believe the price has room to move up a bit if we wait too long,” a source at a major Turkish steel producer commented. Another source at a Turkish mill stated, “Finished steel prices are the problem. They fail to recover and the competition between producers is quite high. We are failing to earn money and scrap is not showing signs of declining unless something changes in the Iran war.” SteelOrbis has heard from some local Turkish rebar traders that they are not inclined to increase their inventory levels despite the higher demand received from construction sites. The traders in question mentioned that interest rates in Turkey are still more attractive to them as compared to higher stock levels, while they do not expect to see any shortage of specifications in the market in the short term. Meanwhile, Turkey is receiving billet and slab demand from abroad, SteelOrbis understands. Some mills have received opportunities to export semi-finished steel products, while an increasing number of Turkish producers are evaluating whether they should avail of such opportunities. “Turkey is once again waiting too long before making scrap inquiries,” another source at a mill added, noting, “We have repeatedly seen that holding back for a long time is not enough to bring [scrap] prices down. Making decisions on one’s own position makes more sense.” Some market sources have pointed to Turkey’s pig iron and HBI imports since the beginning of this year, adding that billet imports recorded in the January-March period are also higher year on year. The general consensus in Turkey’s import scrap market is for a strong sideways movement for now. Market players say prices may move up depending on how long Turkish mills wait.
