Turkey’s import scrap market has been performing in line with expectations, holding its ground. The price levels observed in recent deals signal that suppliers are successfully resisting the lower bids of Turkish mills, with those Turkish mills in need of scrap accepting the sideways movement of prices and buying scrap at a slow pace.
SteelOrbis has learned that the latest ex-Baltic booking was done by an Iskenderun-based producer for HMS I/II 80:20 scrap at $350/mt CFR, for October shipment. Prior to this deal, the ex-Baltic price was at $356/mt CFR in the most recent ex-Finland transaction. However, it should be considered that Turkey’s import scrap market was moving down for a while and, since the ex-Finland booking in question disclosed on September 13, the mood in the market first dipped and then recovered a little.
This price recorded in the new ex-Baltic deal is in line with the expectations voiced by SteelOrbis in its previous report published earlier this week. “This Baltic scrap level is good but, even so, it is on the low side. Ex-Baltic scrap should be around $360s/mt CFR,” a source commented. SteelOrbis considers it important to recall that some Baltic ports have decided to stop scrap transfers during winter as they need space for imports of coal into Europe. “It is unlikely that we will hear ex-US scrap deals nowadays. US-based suppliers’ price ideas are not what Turkish mills are targeting,” a source commented. SteelOrbis hears that US suppliers are targeting $365/mt CFR minimum as they give offers at $370s/mt CFR and above to Turkey. European scrap suppliers are finding opportunities in alternative markets, as SteelOrbis reported today, September 21. As mentioned in SteelOrbis’ Vietnamese scrap market report, European sellers are still offering scrap to locations as distant as Southeast Asia. The vulnerable financial structure of Europe is also exerting pressure on scrap prices, while collection quotations have not fallen as profits shrink in the region. Turkish producers can still decide to cut their production further and bring to a halt the current slight price uptrend, which is expected to be short-lived.
In the short sea segment, demand has recovered slightly. SteelOrbis understands that there are inquiries, but not enough offers. “Sellers are in a cautious mood. They are in no rush to sell but are monitoring the deep sea market instead,” a source reported. As a result, SteelOrbis will keep its short sea HMS I/II 80:20 scrap reference prices in the range of $335-340/mt CFR for now.
