Despite the silent week-long holiday, when Turkish mills returned to the market deep sea scrap prices continued to move up from where they had left off. While this upward movement was expected by market players during or after the holiday, there are questions over its sustainability given the negative mood in Turkey’s steel markets.
SteelOrbis has learned that an ex-UK deal was done by an Iskenderun-based producer for HMS I/II 80:20 scrap at $385/mt CFR and bonus grade scrap at $407.5/mt CFR. The cargo consists of 15,000 mt in total and will be shipped in July. Meanwhile, a rumor indicates that an ex-Belgium deal was closed by a Marmara-based producer with HMS I/II 80:20 scrap standing at $383/mt CFR, for July shipment. Following the deals in question, the reference price for ex-Europe scrap has increased by $3.25/mt.
A third deal is reported to have been done by an Izmir-based producer for an ex-US cargo, with HMS I/II 80:20 scrap at $389/mt CFR. As a result, the ex-US reference scrap price has increased by $3/mt.
European scrap collection prices are at €320/mt DAP Belgian ports and €325/mt DAP Amsterdam, still being on the strong side. In the US, Midwest scrap prices are expected to move sideways to downward in the July buy-cycle, as demand for finished steel products continues to falter. But scarce scrap availability in the EU supports ex-US scrap quotations. 12 mm rebar spot prices in Turkey have settled at TRY 22,900-24,000/mt ex-warehouse, depending on the region. Turkey’s Kardemir raised its rebar price to TRY 19,455/mt ($590/mt), excluding VAT, earlier today, June 26, increasing them by TRY 205/mt. But its price fell by $2/mt on US dollar basis, as compared to Thursday, June 6, against the backdrop of the ongoing currency fluctuations. Approximately 25,000 mt of rebar have been traded given Kardemir’s advantageous payment terms. On the other hand, the flat steel segment in Turkey is still giving negative signals. Demand in the domestic market has remained insufficient, while buyers from Europe are insisting on discounts even though the recent safeguard adjustments were expected to boost demand for Turkish origin HRC. In addition, Chinese HRC offers have declined significantly over the past week, bringing the mood down even further. However, buyers have not shown any interest.