Following the ex-Finland transaction to Turkey reported by SteelOrbis earlier today, July 7, several new deals from the US and the Baltic region have been disclosed in Turkey’s import scrap market.
SteelOrbis has learned that an ex-US deal was done yesterday by a Marmara-based mill for HMS I/II 80:20 scrap at $496/mt CFR and shredded scrap at $514/mt CFR. Also, another ex-US deal has been concluded by a mill in Iskenderun for HMS I/II 80:20 scrap at $498/mt CFR, for August shipment. Another ex-US booking is rumored to have been concluded by the latter seller to an Izmir-based steelmaker for 30,000 mt of HMS I/II 80:20 scrap at $498/mt CFR. The previously confirmed cargo from the US was closed at $497/mt CFR for the benchmark grade and was disclosed on June 30.
Meanwhile, a second ex-Finland transaction is rumored to have been concluded by another Iskenderun-based producer for 20,000 mt of HMS I/II 80:20 scrap at $496/mt CFR, for August shipment. As mentioned earlier today, the most recent ex-Finland HMS I/II 80:20 scrap was bought at $500/mt CFR Turkey.
As observed, the deep sea benchmark grade scrap price still stands in the range of $495-500/mt CFR Turkey, failing to increase amid the reluctance of Turkish mills to purchase at higher price levels. A delicate balance is preserved for now on the back of suppliers’ firm stance on quotations. Although deep sea scrap purchases accelerated yesterday, July 6, some market players are still pessimistic about the future trend of prices, citing expectations that Turkish mills will restrain their purchases in July. Also, it is important to recall that Turkey has a holiday starting on July 15 that will be followed by the Feast of Sacrifice holiday on July 19-23. The current pace of deep sea scrap purchases has surprised some players that were anticipating a faster start to deep sea scrap deals for August shipments.
Meanwhile, market players on the short sea side reports a lack of demand. There are offers in the market from Romania and the Adriatic region, but the offer levels are considered to be on the high side by buyers, sources report. The workable levels are still at around $450-455/mt CFR Turkey for the HMS I/II 80:20 scrap, while market players state that there have not been any deals done on the upper end of this range yet. A similar situation has also been observed in relation to Cypriot and Israeli sellers, SteelOrbis understands.
