Although there have been some rumors of deep sea deals voiced in Turkey’s import scrap market, none of these deals have been confirmed by the buyer or the seller as of today, November 30. As a result, Turkey’s import scrap market is waiting for a clearer signal from the deep sea segment.
SteelOrbis has heard that one St. Petersburg deal was closed at around $491-492/mt CFR Turkey, while another ex-Klaipeda transaction was done at around $488/mt CFR. “The price in the second deal may be an average,” a Turkish mill stated.
There are several deep sea cargoes offered to Turkey right now, with the number reaching nine to ten, according to market players. On the other hand, there are buyers that are seeking cargoes, and so there is still a balance in the market. The slower finished steel sales of Turkish mills are a concern for all parties. Scrap suppliers are also voicing this issue but they are also adding that currently the sentiment in the international scrap market is more important. A US-based scrap seller reports that there is good demand received from Peru, Mexico and Egypt. Also, the domestic demand for scrap in the US and the EU is very strong. A Turkish mill stated, “A good composition with large tonnages of higher grades is hard to find nowadays.” Winter conditions as well as the approaching holiday season is taking its toll on supply. The workable levels for ex-EU HMS I/II 80:20 scrap are estimated to be in the range of $485-490/mt CFR, while ex-Baltic prices for the same grade are at $490-492/mt CFR and for US they are at $495/mt CFR, SteelOrbis understands.
A Turkish mill stated, “Turkey may look for alternative solutions in the coming period, maybe trying to buy more short sea cargoes as it puts pressure on the deep sea segment.” The postponed maintenance works of Turkish mills are now largely on the table, one market player stated. “The second half of January seems available for these maintenance works,” another source reported. “On the other hand, the financial situation of the buyers and the sellers will also be important in the coming days,” a supplier stated. As the Turkish lira is continuing to lose strength against the US dollar, the domestic steel trade volume is slowing down in Turkey.