Turkey's import scrap prices have remained range-bound, with ex-Baltic scrap prices settling into a new range without causing a change in overall HMS I/II 80:20 scrap prices. Market sources believe that deep sea scrap prices will remain range-bound for a while and that a recovery of steel demand is the only thing that can support a significant upward trend of prices.
SteelOrbis has learned that an ex-St. Petersburg deal was closed by a Marmara-based steel producer for HMS I/II 80:20 scrap at $371.5/mt CFR. Meanwhile, an ex-Denmark booking has been closed at $375/mt CFR Izmir, according to sources. As a result, SteelOrbis' reference price for ex-Baltic scrap has declined slightly to $371.5-375/mt CFR, down by just 0.47 percent.
Additionally, an ex-US scrap deal has been done by an Izmir-based producer for HMS I/II 80:20 scrap at $375.5/mt CFR. SteelOrbis' reference price for ex-US scrap remains in the range of $375-376/mt CFR, unchanged week on week.
The problem of scrap flow to export yards in the EU continues amid the continuing heatwave in the region. One exporter has increased its collection prices to €275-280/mt DAP this week, raising them by €5/mt on the upper end, saying that even with these higher levels the pace of collection remains slow. Sea freight prices have declined slightly, though the new levels are not expected to have a big impact on export prices. Meanwhile, Pakistani defense minister Khawaja Asif commented that “things are shaping up in favor of peace” when asked about the latest developments regarding a potential agreement between the United States and Iran.
Market players think that deep sea scrap prices will remain stable at current levels in the coming days, with a very slight increase being possible, according to some. Offer prices shared with Turkey are also rising, though no acceptance from Turkish mills has been observed yet. Most Turkish mills have kept their dollar-based local rebar prices unchanged amid the ongoing depreciation of the Turkish lira against the US dollar and sluggish demand. According to sources, the overall workable rebar prices for cash payment from mills in the Marmara and Izmir regions are at around $571-595/mt ex-works, stable as compared to August 6.
