Turkey’s import scrap prices have continued to move down over the past week, first with an ex-Sweden deal and now with an ex-US transaction.
SteelOrbis has learned that an ex-US scrap cargo has been sold to a Marmara-based producer with HMS I/II 80:20 scrap standing at $460/mt CFR and shredded scrap at $475/mt CFR. Prior to this booking, SteelOrbis’ daily price for US origin HMS I/II 80:20 scrap was at $465-470/mt CFR.
“The bottom of the market is quite close,” a supplier commented. Another supplier said the bottom has already been reached. The collection prices in the EU region do not give any more room to suppliers, signaling for $455-456/mt CFR Turkey without profit or financial cost. The local European scrap market is now providing higher prices and has been more attractive for sellers. “However, we are concerned that the decreasing export trend to Turkey will be reflected in the local European market, and this can lead to another decrease in the European market,” a German seller reported. Workable levels for European HMS I/II 80:20 scrap are now considered to be at $445-455/mt CFR Turkey, very similar to what buyers were seeking this week, at $440-450/mt CFR for deep sea HMS I/II 80:20 scrap. SteelOrbis understands that Turkish producers are now facing resistance from suppliers to their lower bids. “Everyone’s average costs are high, hence $450-455/mt CFR for European scrap is acceptable right now,” another supplier commented. Several Turkish mills are in need of scrap to be shipped in early June and mid-June, and the available calendar for shipments is shortening. In the meantime, there is livelier trading activity in the local Turkish rebar market as, due to the depreciation of the Turkish lira against the US dollar, traders are closing their open positions. “We have evaluated the situation and decided to eliminate the risks,” a trader commented. Another stated that significant tonnages have changed hands over the current week and Marmara based mills are unwilling to cut their domestic rebar prices below $760s/mt ex-works.
Meanwhile, the panic-sales in the short sea segment came to an end after SteelOrbis’ report on May 19 about deals done at $390-391/mt CFR this week. As market players mentioned that day, the price gap between short and deep sea deals was very high. Currently, offers for ex-Romania and ex-Bulgaria HMS I/II 80:20 scrap are in the range of $430-440/mt CFR Turkey. No deal has been heard yet at these levels but Turkish mills’ demand for short sea scrap is strong. “Deep sea prices have not fallen at a similar pace to short sea scrap, and so they can provide some support for us. We will wait for a couple of deep sea bookings before we sell a cargo” an Israeli scrap seller commented. Bids for Cyprus and Israel origin HMS I/II 75:25 scrap are at $350-360/mt CIF Iskenderun and are not found to be acceptable.