Turkey’s import scrap market continues its rising trend, while market sources report that there is now more support coming from the local rebar market. Scrap suppliers are resisting lower or stable bids from Turkey. Sources agree that only one Izmir-based steel producer has completed its deep sea scrap procurements for April shipment, while all the others still need cargoes for shipment in April.
Older deals have surfaced the market. One Izmir-based producer has concluded a deal with a major European scrap supplier, with the cargo to be loaded from two ports in the UK and Germany. The HMS I/II 80:20 scrap price was at $375/mt on average, with the UK at $377/mt CFR and Germany at $373/mt CFR. As a result, ex-EU scrap prices have moved up by $3-5/mt CFR week on week. There is rumor of an ex-Belgium deal done by an Iskenderun-based producer last week with the HMS I/II 80:20 scrap price standing at $375/mt CFR. This information was not confirmed or denied by the parties by the time of publication.
Meanwhile, three older ex-US scrap bookings have been shared. A Marmara-based producer concluded one of them for HMS I/II 80:20 scrap at $380/mt CFR and shredded scrap at $400/mt CFR. The second one is reported to have been done by an Iskenderun-based producer for HMS I/II 95:5 scrap and shredded scrap with an average price of $395/mt CFR. Another ex-US scrap booking was done by an Izmir-based producer with HMS I/II 80:20 scrap standing at $378/mt CFR, reported to have been transacted on Thursday, March 13. Several ex-US scrap sellers agree the workable market price for this grade now stands at $380/mt CFR and above.
Having reduced them late last week, EU-based export yards have increased their purchase prices once again. Germany-based sub-collectors informed SteelOrbis today, March 18, that their sales to export yards last week were closed at €303-305/mt DAP. However, as of today, bids from EU-based scrap exporters have rebounded to €310/mt DAP for HMS I/II 80:20 scrap and €332/mt DAP for bonus grade. The gap between premium grades and HMS I/II 80:20 scrap is higher in the EU. Market sources explain this higher gap citing the lower volumes coming from the US. “Ex-US cargoes now consist of lower volumes of premium grades. Hence, Turkish mills are trying to compensate with tonnages from the EU, where these grades are popular among EU-based buyers,” a scrap seller commented today. Overall, EU mills have also increased their procurement prices, SteelOrbis has learned, though exports are still more attractive for sub-collectors. A source at another major supplier of scrap from Europe and the US reported that scrap flow to export yards was not great when prices were in the range of €300-305/mt CFR. A major scrap seller in the US is also reporting that their dock-delivered prices have increased this week, exerting pressure on their export sales prices. Market sources report that the demand for local rebar in Turkey is higher this week, with some traders more willing to replenish their stocks ahead of the construction season. However, some believe this domestic demand will not be enough to support further rises in the scrap segment. “Scrap is ahead of the rebar market. Current demand is not great. This year may be a slower one in terms of rebar sales, which means we will be forced to put the brakes on the recent price increase soon,” a source at a major Turkish steel producer said. A steel and scrap trader said the scrap price is close to hitting its peak, “Another $5/mt would not surprise me, but further than that seems risky for now,” he added.