Following the import scrap deals concluded in Turkey last week, SteelOrbis observes that Turkish steel mills have taken a step back from the scrap market, though there are still cargoes being offered to Turkey by suppliers from the US, the UK and the Baltic region.
According to market sources, there are three to four cargoes offered to the Turkish scrap market from the US with HMS I/II 80:20 grade priced at $255-256/mt CFR, which is in line with the price levels recorded in the previous deals last week. Also, HMS I/II 80:20 offers from the Baltic region to Turkey are reportedly at $255/mt CFR, also in line with the quotations in the most recent transaction closed last week. Some market sources report that Turkish mills have not procured all their needs for May shipments, though some believe their purchases will depend on their finished steel sales.
From Romania, the offer levels for HMS I/II 80:20 scrap to Turkey are currently at $250-255/mt CFR. The previous deals for this grade concluded last week were at $247-250/mt CFR.
In the meantime, an ex-Mediterranean transaction for 2,500 mt of HMS I/II 75:25 scrap has been concluded today, April 21, at $225/mt CIF İskenderun. SteelOrbis has also been informed that another ex-Mediterranean cargo was sold to Turkey’s Iskenderun region at the end of last week, with HMS I/II 75:25 scrap traded at $230/mt CIF.
The unprecedented fall in oil prices has caused a shock in the international markets. However, market sources state that no immediate impact is foreseen for the scrap sector. Additionally, some market players believe that collection activities will return to almost normal levels in May. Since the tightness of scrap supply is easing, some suppliers are willing to conclude sales with lower percentages of cargoes actually in hand when closing deals, SteelOrbis has heard. It is also noteworthy that Russia will be on holiday at the beginning of May for ten days, while market sources expect an extension of the lockdown in this period.
The general view in the market suggests that this week will be quieter with Turkish mills just monitoring the market to see the trend of their finished steel sales. Also on April 24, Ramadan will start, which is traditionally a slower month in terms of the finished steel trade in Turkey, which in turn may have an impact on scrap purchases.
