Turkey’s import scrap prices have moved up slightly in a new ex-US booking, though the mood among market players is cautious.
SteelOrbis has learned that an Iskenderun-based producer has concluded an ex-US booking for HMS I/II 80:20 scrap at $388/mt CFR and shredded scrap at $408/mt CFR. As a result, the ex-US scrap price has increased by $3/mt week on week.
Also, a rumour of an ex-Denmark scrap deal done by a Marmara-based producer for HMS I/II 80:20 scrap at $388/mt CFR has been heard by SteelOrbis. Although this information was not confirmed by the time of publication, the price in question is considered workable by several market sources.
In line with the abovementioned deals, SteelOrbis’ reference price for ex-EU scrap has been increased to $380/mt CFR.
Amid China’s return from its week-long holiday, the positive expectations of last week have become more cautious. Since the global markets have not received much information from China about its new stimulus package, Turkish mills are monitoring the situation and are less inclined to accept higher price levels for scrap. Speaking at SteelOrbis Italy Forum 2024, held in Milan on October 8, Hüseyin Ocakçı, deputy general manager and Middle East general manager of CIEC Group, said that in 2024 China’s crude steel production has been at an average of 2.25 million mt per day, with a capacity utilization rate of 84.45 percent, compared to 2.39 million mt per day and 89.08 percent, respectively, in 2023. He noted that Chinese mills are maintaining a very low production level due to financial losses and, since production has already seen a five percent decrease, no further production cuts are expected.
European exporters have increased their collection prices to €300/mt DAP Amsterdam and Belgium this week. The initial expectations for a fall in the local European market are under question, while some market players think a stable trend is possible in October. Meanwhile, some scrap suppliers believe the possibility of a sharp uptrend for Turkey’s import scrap market is now non-existent. “Before China was a player in the market, we saw Turkey’s deep sea scrap market settling at approximately $385-390/mt CFR. I believe this time too we will settle at around those levels,” a seller commented. As an example of alternative markets, this week import scrap prices in Pakistan have been showing an upward bias, with new deals heard at $405/mt CFR for shredded scrap, though in general the market has remained under pressure from minimal finished sales due to the unfavorable situation and bad economic conditions, coupled with strike action and protests in the country. India’s import scrap prices have moved up with sellers hiking offer levels amid revived buying interest, with secondary mills restocking raw materials with greater confidence in the wake of surging prices of rebar over the past several weeks.
