Turkey has successfully pushed ex-US scrap prices down in two deals disclosed to the market late at night on January 13, while market players are now waiting for the reaction of European suppliers.
SteelOrbis has learned that an ex-US scrap booking has been done by a Marmara-based producer for 21,000 mt of HMS I/II 85:15 scrap at $338/mt CFR and 10,000 mt of shredded scrap at $355/m CFR, for January shipment. This deal indicates a HMS I/II 80:20 scrap price of $335/mt CFR. Another ex-US deal has been closed by an Iskenderun-based mill for 15,000 mt of HMS I/II 90:10 scrap at $342/mt CFR and 15,000 mt of shredded scrap at $359/mt CFR. This booking done indicates a HMS I/II 80:20 scrap price at $339/mt CFR. As a result, SteelOrbis’ reference price for ex-US HMS I/II 80:20 scrap has declined by another $4.5/mt from the previous confirmed ex-US deals.
Several market sources think that what European scrap suppliers do after the drop in the ex-US prices will have a determining impact. “The euro-US dollar exchange rate has also given some edge to European sellers. They were sure that collection prices will not drop further, but now due to the exchange rate they may have room to cut their export prices,” a source at a major Turkish mill noted. Under the current conditions, European HMS I/II 80:20 scrap prices are expected to decline towards $330/mt CFR, approximately $3-5/mt lower than the previous levels set yesterday, January 13. Additionally, short sea prices are expected to follow suit, moving down towards $315-320/mt CFR Turkey. As the European steel industry continues to feel the impact of the slower regional economy and demand-related issues, the European Federation of Associations of Steel, Tube and Metal Distributors (EUROMETAL) has published some demands and comments concerning the ongoing functioning review of the EU safeguard measures on steel imports, which will be concluded by March 31, 2025. The federation has called for the extension of the comment submission deadline of January 10 for the steel safeguard review, considering the holiday season that spanned late December and early January. The official rebar prices in Turkey’s Marmara and Izmir regions vary at $555-580/mt ex-works, including Icdas A.S’s prices, while the workable rebar prices in these regions vary at $550-560/mt ex-works, for cash payment only. The general sentiment in the local rebar market as regards demand is negative due to the slowdown in the construction sector amid adverse weather conditions.
