Turkey’s import scrap prices are believed to be very close to the bottom if not already there and seem to have recovered a little. Two ex-EU scrap bookings disclosed to the market today, January 16, have shown diverse price trends. Some observers hope that the latest price levels may force buyers to accept levels above $330/mt CFR, which were already targeted by most sellers.
SteelOrbis has learned that an ex-Netherlands cargo has been bought by an Iskenderun-based producer with HMS I/II 80:20 scrap at $327/mt CFR. The same buyer is reported to have closed an ex-UK cargo earlier this week at $326/mt CFR for HMS I/II 80:20 scrap. Another ex-EU cargo, reported to have been loaded from Belgium and France, has been bought by a Marmara-based producer with HMS I/II 80:20 scrap at $334/mt CFR. According to market sources, the difference between the prices is explained by the shipment dates, with the ex-Netherlands booking being for early shipment, as well as by the differences between the origins of the cargoes. SteelOrbis has revised its reference price for ex-EU HMS I/II 80:20 scrap to $327-334/mt CFR for now.
“Actually, Turkish mills are not showing much interest in offers. Only two major mills continue to purchase deep sea scrap cargoes, so they have the power to exert pressure on quotations,” a European scrap seller commented. A source at a major Turkish mill stated, “European scrap sellers believe that they can lower their collection prices after these recent sales. Meanwhile, the price is attractive and a small increase would not change buyers’ ideas regarding purchases of scrap for February shipments.” Meanwhile, the local US scrap market has indicated an upward trend for the January buy-cycle. US scrap prices in the Ohio Valley for January settled up $20/gt versus December levels. Import scrap prices in India have declined amid subdued demand and as buyers have been submitting low bids seeking to offset the impact of the sustained depreciation of the local currency. The continuing decline in import scrap prices has triggered a slight rise in demand from Pakistani buyers this week. Accordingly, some of them have decided to replenish their stocks, though most market participants remain convinced that prices will continue to fall further and, consequently, have adopted a wait-and-see position. The import scrap market in Bangladesh has remained fairly silent this week, with not much trade activity witnessed, even though some improvement has been seen regarding the opening of letters of credit (LCs), while prices have been relatively stable or have shown a slight downward bias for scrap in containers and in the bulk segment.
Meanwhile, Turkey’s domestic rebar market continues to soften. As of today, January 16, Turkish domestic rebar spot prices have decreased by TRY 100/mt with minor changes on US dollar basis, as compared to Monday, January 13. The official rebar prices in the Marmara and Izmir regions vary at $555-580/mt ex-works, while the workable rebar prices in these regions vary at $550-560/mt ex-works, for cash payment only. Turkey’s Kardemir opened its rebar sales at TRY 19,710/mt ($555/mt), excluding VAT, at noon, today, January 16, and closed them after just a couple of hours, having sold around 25,500 mt due to its advantageous payment terms. The producer’s price indicated a decrease of TRY 140/mt ($14/mt) compared to Wednesday, December 11. Turkish rebar producers are going through a silent period in terms of export activity as most international buyers are taking their time before concluding new purchases while monitoring the downward trend in the import scrap segment. Currently, ex-Turkey rebar prices are at $550-555/mt FOB, versus $560-570/mt FOB a week earlier, for late January-February shipment.