Turkey’s deep sea scrap prices have remained relatively stable. However, market sources report that demand received from Turkish mills has accelerated this week and that price inquiries are livelier. Turkey has not completed its scrap purchases for March shipment yet, particularly for the second half of March.
SteelOrbis has learned that an ex-Baltic booking has been done by a Marmara-based producer with HMS I/II 80:20 scrap standing at $357/mt CFR, $1/mt lower than SteelOrbis’ previous expectations at $358/mt CFR, which was calculated according to the usual $5/mt gap between US and EU prices, based on last week’s ex-EU scrap deal confirmed at $353/mt CFR.
An ex-US scrap deal by an Izmir-based producer has been done at $360/mt CFR, meaning the ex-US HMS I/II 80:20 scrap price has increased by $0.5/mt from last week’s $359.5/mt CFR.
Additionally, an ex-Netherlands booking done by another Izmir-based producer was closed at $355/mt CFR for the benchmark HMS I/II 80:20 scrap, moving up by $2/mt week on week.
Collection prices at EU-based export yards have remained at €305-310/mt DAP. A Germany-based sub-collector has reported that the price is very close to the peak, if not there already. “The economic slowdown and financial struggles in the EU region are not helping. Steel demand is not recovering, the automotive sector is in trouble, and housing is almost halted. These fundamentals impact scrap generation deeply. Without any improvement in the EU steel market, we do not expect scrap prices to continue moving up. If the flow to export yards increases once again, a downward correction seems possible in March,” the source reported. Having said that, scrap supplier sources stated that the demand received from Turkish mills has accelerated this week. “It is not a surprise. Last week’s standoff showed all players that forcing each other to accept lower bids or higher offers is fruitless. Ramadan will start on March 1. Turkish mills traditionally procure scrap ahead of Ramadan. Besides, they have not completed their purchases for March shipments,” a seller commented. While Turkish mills report they are buying cheap billets, another source said that the delivery term for those billets is in late April or early May. “Turkish mills cannot fill the gaps in their raw material inventories by buying billets for now. Despite the attractive prices received from Asia, they are bound to buy scrap. Four to five major Turkish mills are seeking cargoes today [February 19]. Next week, smaller mills are expected to return to the market. We do not expect scrap prices to decline in the short term,” the source commented. SteelOrbis hears that European scrap suppliers are now aiming for $355/mt and above, while US suppliers’ targeted prices are at a minimum level of $360/mt CFR. “The positive sentiment in the local US scrap market continues, particularly after the rises seen in the flat steel segment in the US. While the euro-US dollar exchange rate is still playing a big role in terms of ex-EU scrap offers, US suppliers have been keeping their offers firm for some time. This balance is not expected to change much in the coming days,” another player stated.
Meanwhile, short sea HMS I/II 80:20 scrap deals have been closed by Turkish mills in the range of $340-345/mt CFR, with the average price level increasing by $2.5/mt week on week.