Amid the silence in Turkey’s import scrap market, deep sea scrap prices have softened slightly. Turkish mills’ appetite for deep sea scrap is weak and they state that they do not have profit margins, especially in the rebar segment. On the other hand, scrap suppliers are not in a rush to do deals, for the same reasons as a week earlier, namely, the slow pace of collection and since they say collection prices do not give them room to cut their offer prices to Turkey.
SteelOrbis has heard that an ex-US scrap deal was done by a Marmara-based producer for HMS I/I/ 80:20 scrap at $383/mt CFR, shredded scrap at $403/mt CFR and bonus grade scrap at $403/mt CFR. The cargo will be shipped in May. This level is $3.25/mt lower than the previous level. Another ex-US cargo is reported to have been bought by the same producer, with HMS I/II 90:10 scrap at $386/mt CFR.
Meanwhile, an ex-Finland cargo was bought by another Marmara-based mill, with HMS I/II 80:20 scrap standing at $384/mt CFR, for May shipment. As a result, the ex-Baltic scrap price has declined by $1.5/mt.
Lastly, an ex-UK deal was signed by a producer in Izmir for HMS I/II 80:20 scrap at $378/mt CFR, for May shipment. Ex-Europe scrap prices have thus declined by $3.75/mt CFR.
Accordingly, SteelOrbis will adjust its short sea scrap prices down to $360-365/mt CFR as a workable level, with a decrease of $5/mt. Late last week, an ex-Israel cargo for HMS I/II 75:25 scrap was closed by Turkey at $355/mt CIF Iskenderun.
Turkey has concluded at least 27 deep sea scrap deals for shipment in May. This number is similar to its purchases for shipment in April. The overall deep sea cargo needs of Turkey have decreased since the beginning of 2024 due to the lack of steel demand in the local market. With the export markets being mostly out of reach for Turkish mills, domestic demand has a larger impact on prices both in terms of steel and raw materials. Some Turkish mills are focusing on import semi-finished steel purchases to obtain the margins they cannot obtain by using scrap. Meanwhile, the mood in Europe is different from that in Turkey, with HRC prices moving up and with expectations for the scrap segment being positive. The US scrap market is relatively stable, while some market players have informed SteelOrbis that there are no stressed cargoes left in the hands of US-based scrap exporters. The deep sea scrap market is expected to fluctuate in the narrow range of $378-388/mt CFR in the medium term.
