Having remained relatively silent last week, Turkey was showing livelier demand for deep sea scrap earlier this week. Turkish mills were somewhat more willing to continue buying scrap, making inquiries until yesterday, March 7, when the number of offers increased.
SteelOrbis has learned that an Izmir-based producer has concluded a deal from Finland with the HMS I/II 80:20 scrap price standing at $457/mt CFR. While the details of the cargo have not been shared by the parties, the benchmark grade price is $1/mt higher than the ex-Sweden cargo bought on the same day, March 6.
Lately, the higher grades observed in the composition of deep sea scrap cargoes are attracting attention. Accordingly, it is important to mention that prime grade scrap prices in the local US scrap market could jump by “at least $50/gt” based on demand in the ongoing March-cycle purchases. The number of offers in Turkey’s import scrap market has increased, causing Turkish mills to maintain a more cautious stance today. Against the higher number of deep sea scrap offers, Turkish mills have taken a step back, as two separate sellers have reported. Another seller expects more deep sea deals to be concluded this week, at higher levels, citing Turkish mills’ scrap needs for April shipment.
Meanwhile, billet is still not much of an alternative for Turkish mills. While GCC countries are offering $645-665/mt CFR, Malaysian billet is at $670/mt CFR, Indian billet is offered at around $660/mt CFR, and Russian sellers are targeting $645/mt CFR and above for billets to Turkey. However, the delivery terms for Asian billet are longer and are not considered workable for Turkish mills now, while if someone in Turkey is interested in buying billet, the focus would be on origins not subject to import duty. Some Turkish flat steel producers also mention that their order books are filled for June deliveries, and so sentiment in the local HRC market is positive. The construction steel market is still waiting for demand to come from the earthquake-hit region, and so traders have reduced their purchases this week. The issues at the meeting held by the Turkish government, contractors and steel mills yesterday are reported to be same. They are trying to find a way to stabilize prices. There will be another meeting soon, market players report. Meanwhile, the slight depreciation of the Turkish lira against the US dollar is giving some room for Turkish mills to give discounts, SteelOrbis understands.
SteelOrbis has learned that ex-Romania HMS I/II 80:20 scrap was sold to Turkey at $435/mt CFR, while the workable levels are still considered to be at $435-440/mt CFR. Italian scrap sellers’ idea for HMS I/II 80:20 scrap to Turkey stands at $440/mt CFR and above.