Following the silence during the Feast of Sacrifice holiday, Turkey’s import scrap market has moved down in two deals from the US and the EU.
SteelOrbis has learned that an ex-US booking has been done by a Marmara-based producer for 14,000 mt of HMS I/II 85:15 scrap at $381/mt CFR, 14,000 mt of shredded scrap at $399/mt CFR and 2,000 mt of bonus grade scrap at $399/mt CFR. The deal was closed yesterday, July 3. According to the information, US-origin HMS I/II 80:20 scrap is now at around $377-378/mt CFR, $2-3/mt lower than the levels recorded before the holiday.
Another deal by the same producer from Belgium was also done yesterday. The cargo consists of 25,000 mt of HMS I/II 80:20 scrap, 7,500 mt of shredded scrap and 7,500 mt of a mixture of P&S and HMS I scrap at the average level of $377/mt CFR. This information indicates that the HMS I/II 80:20 scrap price is at $369.5/mt CFR, dropping from $378/mt CFR recorded before the holiday.
Meanwhile, ex-Romania cargoes of HMS I/II 80:20 scrap were sold to Turkey at $354-360/mt CFR. As a result, SteelOrbis’ short sea scrap prices have moved down on the lower end, indicating a $0.5/mt decline on average.
Scrap market sources throughout the US agree that July prices will trend down. And while some believe that HMS and P&S are likely to settle at sideways to down $20/gt (with HMS being the strongest grade going into July), it is also suspected that busheling and shredded scrap will settle at down $20-$30/gt, depending on the region. Meanwhile, scrap collection prices of an Amsterdam-based scrap exporter have increased to €300/mt DAP from the €290-295/mt DAP range last week. A European source reports the range below €300/mt DAP has not worked much, with scrap flow being slow. For €300s/mt DAP, SteelOrbis hears flow is faster but is still not considered sustainable. Currently, most mills in the Marmara and Izmir regions are offering official rebar prices at $630-640/mt ex-works. However, there are lower levels in other regions of Turkey, and so basically domestic rebar prices of producers are in the range of $615-640/mt ex-works. On the other hand, the rebar spot market has declined to $610-620/mt ex-warehouse. Meanwhile, billet offers from the occupied Donbass region in Ukraine are at $520-525/mt CFR Turkey for August shipment, while Russia is offering billets at $540-545/mt CFR. It attracts attention that Asian billet offers at $540-545/mt CFR Turkey are at the same levels as billet prices from Russia.