Turkey’s import scrap market has indicated a very sharp decrease in an ex-Belgium deal disclosed to the market late yesterday, December 11.
SteelOrbis has learned that the ex-Belgium booking done by a Marmara-based steelmaker, for 20,000 mt of HMS I/II 80:20 scrap, 10,000 mt of shredded scrap and 10,000 mt of a mixture of bonus and HMS I scrap at the average price of $470/mt CFR. According to the information on hand, the HMS I/II 80:20 scrap is at $460/mt CFR, while higher grades are at $480/mt CFR. The cargo will be shipped in January. Prior to this deal, European scrap prices were in the range of $475-480/mt CFR.
SteelOrbis hears that Turkish mills are still exerting pressure on deep sea scrap prices, asking for lower levels. Turkish mills’ desired prices for premium HMS I/II 80:20 scrap are at around $465/mt CFR, while for European scrap their desired prices are around $455/mt CFR.
Despite the pressure felt by sellers, one US source reported that the mood in their segment has changed since the beginning of this week. “Some US-based sellers were ready to conclude sales at $470-475/mt CFR Turkey early this week, but since Turkish mills are asking for lower quotations, the mood has changed. US suppliers are evaluating alternative markets now, and are in no rush to conclude sales to Turkey,” SteelOrbis understands. Meanwhile, in the Baltic segment, a market source stated that the current level may be a bottom level as collection costs only allow this level to be workable for sellers. “€350-355/mt is the cost for European suppliers, hence $460/mt CFR Turkey seems the lowest level that can be accepted by the sellers,” the source commented. A major European supplier added that there are alternative destinations for them, and so they are in no rush to cut prices for Turkey. Additionally, Turkey is expected to buy at least 20 more cargoes for January shipments. “There are still 20 days for Turkey to purchase those cargoes, so there is still some room,” one player stated, though some disagreed, with one source stating, “The more they wait, they may find themselves in a tight schedule - if they can find the cargoes they need in the first place.”
In the short sea segment, ex-Romania HMS I/II 80:20 scrap has been sold to the Marmara region at $440/mt CFR. Suppliers consider the range of $440-445/mt CFR workable for Romanian and Bulgarian HMS I/II 80:20. However, there are not many bids from Turkish mills, while sellers are also in no rush to lower their quotations further and have been keeping their distance somewhat.