With a relatively older deal rumoured to have been done last week, deep sea scrap prices in Turkey have declined by at least $10/mt.
SteelOrbis hears that an ex-US deal has been done by an Izmir-based mill, with HMS I/II 80:20 scrap standing at around $360-363/mt CFR. The information was not confirmed by the buyer or the seller at the time of publication, though the price levels in question were in line with the initial expectations in the market. Prior to this deal, the ex-US scrap price for Turkey was at $373/mt CFR.
The pressure on Turkish mills is still increasing as rebar prices are trending downwards in the local market. While the local flat steel market is under pressure from imports, rebar prices were the main support for deep sea scrap quotations. However, in the past two weeks the local rebar market has failed to maintain its strength. Domestic rebar prices have decreased to $655/mt ex-works in deals, while mills’ official price levels are standing at $670-675/mt ex-works. Since Turkish steel export activity remains silent, deep sea scrap prices are expected to move down further. An Amsterdam-based exporter is reported to have bid $300/mt DAP as a collection price, while European sources have informed SteelOrbis that scrap flow to export yards is slow. “We are not sure of the reason. I believe since the end of the year is approaching sub-collectors are not in a rush to sell. More profits mean more taxes to pay,” a source commented. European players have stated that their domestic scrap market is set to move sideways in the coming months, though their expectations are pessimistic for the longer term.
The short sea segment has now settled at $337-340/mt CFR following deals done from Romania and Bulgaria. Short sea sellers are willing to accept lower levels, while one seller from Romania said that $330/mt CFR is quite possible in the near future.