Turkey’s import scrap market is still moving sideways, with deep sea scrap quotations remaining firm while Turkish mills are trying to complete their cargoes for shipment in October.
SteelOrbis has learned that an Iskenderun-based Turkish producer has concluded a deal from the US for 18,000 mt of HMS I/II 80:20 scrap at $377/mt CFR and 12,000 mt of shredded scrap at $397/mt CFR, for October shipment. This price level of benchmark scrap is same with the previous deal done by the same seller.
Also, another ex-US scrap deal is heard to be done by another Iskenderun-based producer, with HMS I/II 90:10 scrap standing at $383/mt CFR. Although this information was not confirmed by the buyer or the seller, most market players think that the booking was in fact done. This information signals that HMS I/II 80:20 scrap prices are still at around $377/mt CFR Turkey.
A third ex-US deal has been done by a Marmara-based producer for HMS I/II 80:20 scrap at $377/mt CFR, with shredded and bonus grade scrap transacted at $397/mt CFR.
Meanwhile, domestic scrap quotations in the EU are moving up. In eastern Germany, domestic producers have increased their local scrap procurement prices by €20-25/mt. In France, a mill increased its purchase prices by €5-10/mt, but this rise is not considered sufficient by some players. A German scrap supplier reported that the Italians may increase their prices by €15/mt in the coming period. This expectation was seconded by an Italian source, who added, “In Italy, the price of scrap dropped €10/mt after the holidays. I think it will not go down further because there is less demand for scrap but also less availability from traders. Towards the end of the month, there may be a reversal.” As a result, the domestic scrap market is providing some support for exports, while scrap flow in the region is still on the low side.
India’s demand for European scrap continues at a slower pace, according to market sources. As SteelOrbis reported yesterday, September 13, import scrap prices in India have moved down slightly amid the fall in demand and with buyers staying away from new deals given the large arrivals at ports against past contracts, but this was largely seen to be a temporary pause considering the strong performance of India’s construction grade steel sector. Following several weeks of price hikes for imported shredded scrap in Pakistan, this week market insiders have reported new deals signed for ex-UK/EU shredded scrap at slightly lower levels. Although limited end-user demand and financial constraints have continued to subdue the Bangladeshi scrap market, more deals for both bulk and containerized scrap have been reported in Bangladesh this week as local rebar mills have been focusing on restocking. Besides, while foreign suppliers of scrap in bulk have kept maintaining their prices at high levels, prices of containerized scrap have decreased in new deals. Regarding China, prices of raw materials like iron ore and coking coal have moved up, and developments in the property market are providing support. However, demand is not enough to support any visible uptrend. So, steel prices in the export market are stable or declining, while the changes in the local market are insufficient. High steel production in China is the main reason for the current situation.