In several ex-Europe scrap transactions concluded this week, Turkey’s import scrap market has indicated a slight price recovery from apparent bottom levels.
SteelOrbis has learned that a producer in Turkey’s Marmara region has concluded one of the new ex-UK bookings for HMS I/II 80:20 scrap at $373/mt CFR and shredded scrap at $398/mt CFR, for June shipment. Another ex-UK deal was done by a different Marmara-based mill for HMS I/II 80:20 scrap at $375.5/mt CFR and shredded and bonus grade scrap at $400.5/mt CFR, for June shipment. Earlier this week, an ex-Belgium deal was closed at $374/mt CFR, whereas the previous ex-UK transaction price was at $372/mt CFR. SteelOrbis has revised its European HMS I/II 80:20 scrap prices to $373-375.5/mt CFR, from the previous average of $373/mt CFR.
Some market sources believe that Turkey’s import scrap market has hit the bottom and now can show some upward correction. However, there is no excitement among market players since few, if any, expect an upward trend in the deep sea scrap market. “Finished steel sales prices are very low as well as the tonnages as compared to previous years. There is significant pressure on Turkish mills, which is obviously being reflected in their scrap purchase negotiations,” a scrap supplier commented. European sources report that collection prices in the region have declined to €307-310/mt DAP. While European producers’ purchase prices are at around €315/mt ex-works, there is also demand for scrap in the EU. “There is demand for scrap but scrap flow is not sufficient. When we cut our prices, the tonnages offered decline rapidly,” a German sub-collector commented today. Another German sub-collector mentioned that they concluded a sale at €310/mt DAP earlier this week and are considering lowering their inventories further since their scrap grade is more suitable for export. On June 16-20, Turkey will be on holiday for the Feast of Sacrifice and some market players are commenting that Turkish mills are expected to take a break during this period, reducing their number of shifts or carrying out maintenance works. Turkey’s import scrap market is expected remain in a narrow price range unless a change is seen in the finished steel segment in the short term.
