Prices in the Turkish deep sea scrap market have remained stable in the range of $340-347/mt CFR, with deals mostly kept silent.
On Friday, August 15, an Izmir-based Turkish steel producer concluded a deal from the US with the benchmark HMS I/II 80:20 scrap price standing at $347/mt CFR. This price is similar to the prices in the previous bookings done from the US. Another rumor surfaced in the market yesterday, August 18, regarding another ex-US transaction, with the benchmark price reported at $348/mt CFR, but this deal was denied by one of the parties. Therefore, SteelOrbis’ reference price for ex-US scrap has remained unchanged at $346-348/mt CFR.
Meanwhile, market sources report that the collection prices of European scrap export yards have softened a bit to €250-260/mt DAP. Hopes of a recovery in scrap demand when Europe returns from the holidays in September are also weakening, with sources reporting that Europe’s steel sector is facing a serious crisis. Currently, offers shared by European scrap sellers are at around $345-346/mt CFR, with a slight discount seeming to be possible in negotiations. The number of offers in the market late last week was on the high side, though this week suppliers have not yet shown aggression in their desire to sell. “We may see some transactions starting on Wednesday,” a European supplier commented. A source at a major mill agreed, adding, “We are monitoring the situation in the EU. The exchange rate gives us some margin for sales, but the demand situation in the EU will be important.” Some sources believe that, before the anticipated pick-up expected to be seen in September, deep sea scrap prices in Turkey may see a slight downward correction. Ex-UK offers at around $340/mt CFR give the impression that levels lower than this would be acceptable for some suppliers in the UK.
For now, SteelOrbis believes the bottom of the general price range is solid, with most European exporters collecting scrap in the range of €250-265/mt DAP in the previous weeks. The euro-dollar rate standing at 1.16 today gives little to no room for a decline yet. Hence, deep sea scrap prices in Turkey are expected to move sideways in new bookings.
