The gap between ex-UK/EU and ex-US scrap prices for Turkey has narrowed after the latest deals signed from the EU and the Baltic region, with prices now characterized by greater equilibrium.
SteelOrbis has learned that an ex-Germany scrap booking by a steel producer in Turkey’s Black Sea region has been closed at $408/mt CFR for HMS I/II 80:20 scrap, causing ex-UK/EU scrap prices to move up by $3/mt week on week. The cargo is to be shipped in June. With this upward move, the larger gap between ex-UK/EU and ex-US scrap prices after previous deals has declined to $6/mt, with prices now considered to be in greater equilibrium.
Another scrap deal, from Denmark, has been closed by an Izmir-based steel producer for HMS I/II 80:20 scrap at $411/mt CFR, for June shipment. Accordingly, SteelOrbis has revised its ex-Baltic scrap prices to $409-411/mt CFR, up by $1.5/mt week on week.
As SteelOrbis reported previously, US East Coast (USEC) ferrous scrap prices to docks have remained unchanged this week, even after some sellers saw their own selling prices increase by $10-15/gt. Still, some of them were integrated into the higher end of the already established price ranges. Exporters could be looking at changes in the domestic scrap market this week as well. Even though no increases are expected for cut grades in the May buy-cycle, they could remain sideways in the best-case scenario. In some instances, contacts believe they may drop by $10-20/gt due to increased scrap flows resulting from higher temperatures in spring. As far as the European export market is concerned, no changes have been reported regarding collection prices of HMS I/II 80:20, which are still at around €300-305/mt DAP, sources report.
Turkish mills have mainly kept their domestic rebar prices stable on US dollar basis, while adjusting their prices in Turkish liras amid ongoing currency fluctuations. Official dollar-based rebar offers and workable prices from mills in the Marmara and Izmir regions, including İçdaş, have fallen by $5/mt on the lower end to $595-615/mt ex-works and $590-610/mt ex-works, respectively, as compared to April 30. With hopes rising once again regarding a deal between the US and Iran, a sharp decline in Brent oil prices was observed earlier today, before they recovered to above $100 again. The announcement of a possible deal has come from a source on the Pakistani side, while Iran still has not confirmed that a deal is close to being signed but said they are evaluating the offer on the table.
