Turkey’s import scrap market has continued its downward trend unabated, with import scrap price declining further in each deal. “We all thought that we had hit the bottom at certain levels since prices started to fall from $600s/mt CFR, but the bottom is not here yet it seems,” a source commented. Although scrap flow to export yards has slowed down significantly, with some even describing the situation as alarming, Turkish mills have not returned to the market in full force. As a result, import scrap quotations in Turkey are still moving down.
SteelOrbis has learned that a Black Sea-based Turkish producer has concluded an ex-Belgium deal for 25,000 mt of HMS I/II 80:20 scrap, 5,000 mt of shredded scrap and 5,000 mt of a mixture of P&S and HMS I scrap at the average level of $335/mt CFR, for July shipment. According to the information on hand, the HMS I/II 80:20 scrap price is estimated to be at $330/mt CFR, $20/mt lower than the previous levels.
There was a report of a smaller ex-France scrap cargo sold to Turkey’s Izmir region earlier this week, with the price reportedly at $330/mt CFR. This information was not confirmed by the parties, but the transaction is largely believed to be done.
Meanwhile, a report of a major European scrap supplier selling a cargo to China has surfaced in the market today, June 22. The information was not confirmed and there are no further details yet about the booking, though it is largely believed to have actually been done. This is an unusual sale from the EU and is believed to have been done before Chinese prices decreased sharply. While European scrap suppliers were looking for ways to sell to China since it started to import scrap, they have mostly failed to find a window of opportunity.
One seller stated, “Now Turkey’s import scrap market may be close to hitting the price bottom since collection has slowed down significantly amid the recent cuts in collection prices.” However, a Turkish long steel mill producer said, “Turkey is not looking for a price bottom or trying to exert pressure on scrap quotations. On the contrary, falling scrap prices are not helping anybody, sellers or buyers. The problem is not the scrap price, it is still the lack of finished steel sales. Therefore, if demand does not recover, the scrap market cannot either.” It also attracts attention that Turkish mills’ finances are stressed due to various reasons, such as unrealized steel sales, reduced credit lines, and high levels of finished steel inventories in hand.
In the short sea segment, sellers state that the downward pressure exerted by mills is strong. While there are no confirmed deals from Romania and Bulgaria, mills’ bids for this origin HMS I/II 80:20 scrap have declined below $300/mt CFR. The sellers are unwilling to conclude sales at these levels for now, some sellers state. SteelOrbis estimates the workable levels for this grade to be in the range of $300-305/mt CFR, $30-35/mt lower than the previous deals. Meanwhile, Iskenderun-based mills’ bids for ex-Mediterranean HMS I/II 75:25 scrap are in the range of $285-290/mt CFR, while sellers believe levels above $290s/mt CFR are not workable for this grade anymore.
