Turkey is still exerting significant pressure on deep sea and short sea scrap prices, with a new bottom seen in each deal. Several market sources report that the number of offers shared with Turkish mills is on the high side, while US suppliers are giving the impression that they are in no rush to conclude bookings at the bid prices received. The general sentiment in Turkey’s import scrap market remains negative.
SteelOrbis has learned that an ex-Netherlands deal has been closed by an Iskenderun based producer for HMS I/II 80:20 scrap at $337/mt CFR, with bonus grade scrap at $357/mt CFR. The cargo will be shipped in December. This price is $5.5/mt lower than the previous ex-EU cargo.
As mentioned, US-based suppliers are heard to be waiting instead of accepting lower than the $345/mt CFR bids shared by Turkish mills. Earlier this week, ex-US cargoes were offered prices at around $350/mt CFR, but, as of today, November 27, some sellers are more willing to accept $345/mt CFR, Turkish producers report. However, SteelOrbis also hears that, despite the decline in ex-US scrap offer prices, producers have taken a step back and are now asking for lower levels. A source at one major Turkish mill said, “Turkey’s purchases for December shipment have almost been completed, but there is still a lot of cargo available for this shipment term.” Another source at another major Turkish producer agreed, saying below $350/mt CFR for ex-US cargoes seems guaranteed but the more the price declines the more Turkish producers’ finished steel prices are compromised. Under the current conditions, SteelOrbis has revised its ex-US scrap prices to $345/mt CFR, dropping them by $8/mt from the previous deal. As a result, SteelOrbis’ reference prices for ex-Baltic HMS I/II 80:20 scrap will settle at $340-343/mt CFR. Several market players believe more deep sea bookings will be heard in the current week since December is a short month due to the holidays. “There are still offers in the market for December shipment, yes! But there is also a shipment date problem. Some offers are to be shipped in the first half of December, while producers are more interested in lower levels for January shipment,” a scrap supplier reported.
Turkey’s demand for short sea scrap remains scarce, market sources report. While the workable levels for ex-Romania HMS I/II 80:20 scrap are now at $320-325/mt CFR, no new deal has been recorded at these levels. “While there are so many deep sea cargoes available from all supplier regions and with the price dropping in each deal, buying short sea cargoes makes little sense,” a source at one Turkish producer said today.