Turkey continues to conclude deep sea scrap purchases and accepts that deep sea scrap prices are now above $340/mt CFR. Although some buyers are insisting on lower price levels, they have failed to find a positive response on the sellers’ side. Turkey’s recent interest in scrap points to a limited upward movement in the coming period. It shall be noted that Turkey’s average scrap procurement prices have not exceeded $350/mt CFR since April 15. Turkey’s import scrap tonnages totaled 8.16 million mt in the first five months of the year, approximately 461,000 mt year on year. Only purchases in April were higher on year-on-year basis.
A producer in the Marmara region has concluded a deal from the UK for 20,000 mt of HMS I/II 80:20 scrap at around $340.5/mt CFR. This price is similar to the deal price from the Netherlands last week, indicating only a $0.5/mt rise in the ex-EU/UK scrap price.
Meanwhile, an ex-Baltic cargo has been bought by an Iskenderun-based producer with HMS I/II 80:20 scrap at $339/mt CFR and bonus grade scrap at $359/mt CFR, but market sources report that this deal was done last week. Accordingly, SteelOrbis’ reference price for ex-Baltic HSM I/II 80:20 scrap remains at $343/mt CFR.
After declining below the $340/mt CFR level on June 1, ex-UK/EU scrap prices are once again above this psychological threshold. Ex-US scrap offers are standing at $350-352/mt CFR Turkey as of today, July 8. Market sources report that the market is slow this week. After concluding several bookings last week, Turkish mills are taking a breather. The local rebar market in Turkey is also softening against the backdrop of the ongoing fluctuations in the Turkish lira-US dollar exchange rate and due to the lack of demand. Wire rod prices in Turkey are also softening. While billet offers from Asia are moving up for Turkey, freight rates are also rising due to the start of the grain season, while after the latest attacks on vessels in the Red Sea, including those carrying steel billets, freight rates for the Asia-Middle East route may rise further. While Turkish mills are still seeking import billets to be shipped with a close delivery term amid the lack of billet demand in China, they also admit that they need to conclude deals for scrap this month.