As July comes near to an end, Turkey's import scrap prices continue to remain firm. Some scrap deals from last week indicated that buyers and sellers have agreed on current price levels. There is a common view in the market that deep sea scrap prices are not expected to move down to previous levels in the short term, though sources are still trying to understand the limit of the recent uptrend.
SteelOrbis has learned that a mill in Turkey's Black Sea region has concluded an ex-Sweden booking with the HMS I/II 80:20 scrap price at $376/mt CFR. This origin is usually priced similar to ex-US materials. As a result of the booking, SteelOrbis has revised its ex-Baltic scrap quotations to $374-376/mt CFR. The deal in question is reported to have been done on Friday, July 24.
Meanwhile, a Marmara-based steel producer has concluded an ex-UK booking for HMS I/II 80:20 scrap at $368/mt CFR, the same as the previously closed ex-UK deal. SteelOrbis' reference prices for ex-UK/EU scrap remain in the range of $368-370/mt CFR for now.
An Izmir-based producer has bought an ex-Murmansk cargo with HMS I/II 95:5 scrap at $397/mt CFR, market sources report. This deal is also believed to have been closed last week.
As SteelOrbis reported yesterday, July 27, the overall workable rebar prices for cash payment from mills in Turkey's Marmara and Izmir regions are at around $570-585/mt ex-works, unchanged compared to July 23. Demand in the local rebar market is not expected to improve much in the coming period, as half of the summer season is already gone. New protective measures against Turkish steel are also curbing Turkey's export potential. The cost-profit balance remains important for Turkish mills, while they are also need to buy scrap. “The upcoming term [September shipments] will witness strong negotiations. Mills are unwilling to accept much higher prices, while suppliers think availability may be an issue as Europe's holiday continues,” a source commented.
The first expectations for the US domestic ferrous scrap market in August are tepid despite the ongoing boom in the finished steel sector. Contacts report that there are ample amounts of scrap in the market, given that some material has not left the country due to the weak export market on both coasts. Even if some of the material for export is not of the same quality as the material consumed by domestic mills, sources believe an improved export market could lower available supplies. In the EU, ahead of the scheduled summer shutdowns in August, many mills have reduced their scrap purchases and covered their needs at lower prices compared to the previous month.
Under the current conditions, some stability can be expected in Turkey's import scrap market for now. When the pace of purchases particularly for September shipments accelerates, another slow uptrend may be seen.
