With several deals confirmed today, May 10, Turkey’s import scrap market has showed signs of stabilization, though the likely duration of this positive movement is not known yet.
SteelOrbis has learned that three ex-US scrap bookings have been closed. An Iskenderun-based producer bought one cargo for 17,000-20,000 mt of shredded at $395/mt CFR and the balance will be filled with HMS I/II 80:20 scrap at $375/mt CFR. The total tonnage will be 30,000 mt, for shipment in June. The same producer has concluded another ex-US booking for 5,000 mt of HMS I/II 80:20 scrap at $377/mt CFR and 25,000 mt of shredded scrap at $397/mt CFR, again for June shipment. Also, a producer from the Marmara region closed an ex-US deal with HMS I/II 80:20 scrap at $375/mt CFR and shredded scrap at $395/mt CFR. As a result, ex-US scrap prices have declined by $21/mt on average from the most recent confirmed deal on May 2.
Meanwhile, an ex-Netherlands deal has been done by another Iskenderun-based steelmaker for 25,000 mt of HMS I/II 80:20 scrap at $369/mt CFR and 5,000 mt of bonus grade scrap at $389/mt CFR. It is also known that another ex-Netherlands deal was closed by a Marmara-based producer for 32,000 mt of HMS I/II 80:20 scrap and 8,000 mt of bonus grade scrap, with the average price level of $375/mt CFR. This indicates $371/mt CFR for HMS I/II 80:20 scrap quotations. As a result, ex-EU HMS I/II 80:20 scrap prices have declined by $22.50/mt.
An ex-UK cargo was bought by an Izmir-based producer on Wednesday last week, with HMS I/II 80:20 scrap at $373/mt CFR and shredded scrap at $398/mt CFR. The total tonnage in the cargo was around 20,000 mt. Additionally, a producer in the Black Sea region of Turkey bought an ex-Scandinavia cargo with HMS I/II 80:20 scrap standing at $369/mt CFR, though no further details were shared about this deal by the time of publication.
A deal was closed by a Marmara-based mill for 4,000 mt of HMS I/II 80:20 scrap at $348/mt CFR, indicating a $4.50/mt decline as compared to the previous levels fixed in deals. For Romanian HMS I/II 80:20 scrap, the workable level is in the range of $345-350/mt CFR. SteelOrbis has heard that Black Sea scrap suppliers are not interested in low price levels anymore and are asking for $350s/mt and above in negotiations.
It has been heard that some Marmara and Izmir-based producers managed to sell high volumes of rebar in the local market earlier this week. Prices gradually increased during the sales in question, starting at $635/mt ex-works and closing at $645/mt ex-works. Some market players think that Turkish rebar traders are closing their open positions ahead of the elections, while some say it is a move to avoid risks since stocking at US dollar prices has become hard for everyone. “Therefore, it is not yet clear whether this new revival in the finished steel segment is here to stay,” a source said. Nevertheless, this livelier demand for steel has supported the deep sea scrap market and led producers to make inquiries which have resulted in deals. Meanwhile, most market players surveyed by SteelOrbis said the new deep sea scrap bookings will lead to a stabilization. Today, a European scrap exporter shared bids for local scrap procurement and its price for HMS I/II 70:30 scrap was at €280/mt DAP, while HMS I/II 80:20 and bonus scrap were at €290/mt and €300/mt DAP, respectively. Another European export yard was bidding at €290/mt DAP yesterday, May 9. However, a European sub-collector stated that these lower levels are not workable, despite the price cuts announced by European producers. “We will restock and wait. I think the acceptable levels for us to send material to export yards is €310-320/mt DAP if we do not want to lose money,” a German sub-collector said. European scrap suppliers report that domestic scrap flow is almost 60 percent lower than usual, particularly for higher grades. US-based suppliers are concerned about the same problem. “Domestic scrap flow in the US has declined by 45 percent,” a seller said. Under the current circumstances, SteelOrbis believes that deep sea scrap prices have some room to breathe and move sideways. If the finished product segment supports this situation, some rise is also possible, though a significant increase is not expected yet. It should be noted that Turkey’s presidential election may lead to a second round if no candidate wins 51 percent of the votes on May 14. In this case, the Turkish market may come to a standstill for fifteen days until the second round which would be held on May 28.