After the recent long holiday, it has been confirmed that prices in Turkey’s import scrap market have declined below $410/mt CFR in European, Baltic and ex-US deals, mostly done during the Feast of Sacrifice holiday period. Given Turkish mills’ resistance to higher levels, a softening in the international scrap market was expected and the decline in prices did not come as a surprise to market players.
Steelorbis has learned that an ex-US scrap booking by an Izmir-based steel producer was closed last week for HMS I/II 90:10 scrap at $414/mt CFR, with shredded scrap at $429/mt CFR, for shipment in June. This price indicates that the benchmark ex-US HM SI/II 80:20 scrap price is now at $409/mt CFR, moving down from the pre-holiday $414-415/mt levels.
Similarly, an ex-Netherlands deal was done by a Marmara-based steel producer for HMS I/II 80:20 scrap at $397/mt CFR. As a result, SteelOrbis has revised its ex-UK/EU reference scrap prices to $397-400/mt CFR, down from the $406-408/mt CFR range recorded before the holiday.
A rumor of an ex-Denmark deal signed by a mill in Turkey’s Black Sea region has not been confirmed by the time of publication, but the rumored deal also indicates that the HMS I/II 80:20 scrap price is at $409/mt CFR Turkey. Cargoes of this origin are usually sold at a very similar price to ex-US scrap cargoes and the rumored level is in line with the current market situation. SteelOrbis has reduced its ex-Baltic scrap price to $407-409/mt CFR for now.
Prices to the US East Coast (USEC) docks have remained unchanged for cut grades in New York and Philadelphia, while the higher end for shredder feed has been reduced and the grade has settled at $240/gt delivered to export yard, from $240-250/gt delivered last week. Meanwhile, European sub-collectors reported that EU-based export yards are preparing for a softening in Turkey’s scrap purchase prices, reducing their collection quotations by €5/mt on the upper end and currently bidding at €295/mt DAP. Freight cost is also gradually declining, giving some room to sellers. The euro-dollar exchange rate is still at 1.16 to the dollar and seems to have stabilized. A German sub-collector commented that the €295/mt DAP level is workable and that they can destock some of their inventories this week.
As previously reported by SteelOrbis, with June beginning, most Turkish mills are attempting to increase their local rebar prices after the recent holiday. The main reasons are high production costs as well as the ongoing currency fluctuations. However, most local buyers are just back from the holiday and are evaluating the market conditions before making any purchases. The overall workable rebar prices for cash payment in the Marmara and Izmir regions are now at around $590-610/mt ex-works. Trade in Turkey’s billet market has been rather slow following the holiday, while prices have mostly stabilized. Market sentiment is generally weak as rebar sales in both the domestic and export segments are still insufficient. As a result, local demand for billet has been on the quiet side, while in the import segment there are basically two origins available - China and Russia. Preference may be given to the latter by small and medium-sized buyers due to the advantage of short lead times. Ex-China billet offers for end-of-July and mainly August shipments have settled at $525-530/mt CFR, in line with the pre-holiday levels, while ex-Russia billet has been at $485-490/mt FOB Black Sea, inching up by $2.5/mt on average over the past fortnight.
