Several reports heard in Turkey’s import scrap market today, November 4, indicate that prices are moving down in line with market’s initial expectations.
SteelOrbis has heard that an ex-Lithuania deal to Turkey’s Izmir region has been closed at $348/mt CFR for HMS I/II 80:20 scrap. Prior to this deal, the ex-Baltic HMS I/II 80:20 scrap reference price was in the range of $350-355/mt CFR, adjusted downwards after the ex-US deal closed at $355/mt CFR Turkey.
There is a rumor of an ex-EU scrap deal done by an Iskenderun-based mill, with HMS I/II 80:20 scrap at $348/mt CFR. SteelOrbis believes that this deal should be relatively older than the ex-Baltic booking, though the information has not been confirmed by the buyer and has been denied by the seller. On the other hand, the price in question is in line with the initial expectations in the range of $345-350/mt CFR, though SteelOrbis’ reference prices for this grade will be adjusted down to $340-345/mt CFR.
Another ex-US deal is rumored to have been done by a different Iskenderun-based producer with the price standing at $358/mt CFR, but the ideas about the grade of scrap in the cargo vary. Some market players state that this may be a price for higher grades, such as shredded and bonus. Some market players think that it could be an older deal.
A source for ex-US scrap mentioned that the workable levels for ex-US HMS I/II 80:20 scrap are around $350s/mt CFR today, which shows that the price gap between ex-EU and ex-US scrap is closing. This was also expected due to higher collection prices in the EU, where scrap flow is also slow ahead of the approaching winter. Additionally, SteelOrbis sources comment that the local Turkish rebar market has accelerated in terms of trading in the afternoon today. “We do not see scrap collapsing and so we are cautiously increasing our inventory levels,” a trader commented.
Short sea scrap prices for HMS I/II 80:20 scrap from Romania and Bulgaria remain stable in the range of $330-335/mt CFR. However, the decreases recorded in the deep sea segment will exert pressure on short sea scrap, and the reaction of suppliers will gain importance in the coming days.
