While there are several rumors circulating in Turkey’s import scrap market today, May 27, all of the deals in question have been denied by the buyer or the seller. Despite the rejections, the market is now considered to have settled and is largely expected to move sideways before the SteelOrbis Spring 2022 Conference & 86th IREPAS Meeting to be held on May 29-31 in Istanbul.
According to the rumors which have been denied, two ex-US deals would have been concluded to Turkey, with HMS I/II 80:20 scrap standing at $455-457/mt CFR. Some market players commented that, since a fall in the local US scrap market is expected in June, US suppliers may accept these levels for Turkey on CFR basis. Nevertheless, SteelOrbis’ ex-US HMS I/II 80:20 scrap prices are still at $460/mt CFR, as fixed in the previous confirmed deal.
Also, there was another booking rumored to have been done by an Iskenderun-based mill from the UK with HMS I/II 80:20 scrap at $453/mt CFR, for June shipment. For this deal, the parties preferred not to comment. This price is a bit higher than SteelOrbis’ estimations for ex-EU HMS I/II 80:20 scrap and results in a small upward revision in its daily prices from $445-455/mt to $450-455/mt CFR.
“Despite these deals being denied, we can easily say that the market is not going below these levels,” a source from a mill commented. A supplier reported that the price for European scrap can be considered as being in the range of $445-455/mt CFR. “Demand is not lively. We can see that suppliers have cargoes and some are willing to sell them in the ranges that are voiced in the recent rumors,” a seller said. Most market players surveyed by SteelOrbis today agree that trade may pick up during the IREPAS Meeting, though the first price levels are expected to move sideways for premium grades at $450-460/mt CFR. “Turkish mills’ finished steel sales are still on the low side, and so we cannot say there is a good appetite for more deep sea bookings,” another seller commented, though he added that the margins of European sellers are also tight, causing some of them to wait. The general idea in the market is that a balance is achieved with scrap prices being in the range of $450-460/mt CFR and rebar prices being at $750-760/mt ex-works. “I would say that these are the new levels: $450/mt CFR for scrap, $750/mt for rebar and $780-790/mt for wire rods,” a mill reported, adding, “Going upwards from here is a possibility, but I imagine the movement would be slow if it happens.”
Meanwhile, the price levels in the short sea segment have also recovered. A deal from Croatia for HMS I/II 80:20 scrap was done at $425/mt CFR, while deals for the same grade were closed from Romania in the range of $425-430/mt CFR. Also, HMS I/II 75:25 scrap from Israel was sold at $410/mt earlier this week, and was sold from Cyprus recently at $415/mt, both CIF Iskenderun. “The short sea scrap market has recovered as deep sea sellers resisted lower quotations for Turkey,” a seller commented.
