In a deal done from Europe, Turkey has successfully kept its import scrap purchase prices stable. This had been anticipated since last week due to the lack of any support for a further price increase in the deep sea market.
The transaction in question was done from Germany by a steel producer in the Marmara region for 13,000 mt of HMS I/II 80:20 at $343/mt CFR, 7,000 mt of shredded scrap at $363/mt CFR and 6,000 mt of bonus grade scrap at $363/mt CFR. This level is merely one dollar higher than the previous ex-UK/EU booking.
Turkish market players believe that deep sea scrap prices have settled for the time being in the current range, with most being cautious and voicing the range of $340-350/mt CFR Turkey. But it should be recalled that the highest price level recorded in May was $347/mt CFR Turkey. Unless steel demand recovers in the coming days and/or Turkey’s economy shows signs of a recovery, no upward push is expected for deep sea scrap prices in the coming period. “We see that they are not rising, but will they fall? I don’t think so,” a European scrap suppliers said regarding collection prices in Europe. However, collection prices for EU-based export yards are showing signs of a softening after moving up to €270/mt DAP. Steelorbis has heard that some export yards have already cut their purchase prices by €5-10/mt. A source stated that this change could be the start of a further decline in the European local market, which had previously already seen decreases. “For now, we don’t expect lower than $340/mt CFR Turkey,” a source at a Turkish mill commented, adding, “We will start buying for July shipments now, since demand will be back after the Feast of Sacrifice holiday.” Turkey’s import scrap market is expected to continue to move sideways this week.