As of this week, the Turkish scrap market has signaled a slight decrease in prices, while some deals are rumored to have been done at lower levels for prime grades.
SteelOrbis has learned that an Iskenderun-based mills has concluded an ex-US deal for 18,000 mt of HMS I/II 80:20 scrap at $453/mt CFR, 7,000 mt of shredded scrap at $458/mt CFR and 5,000 mt of bonus grade scrap at $460/mt CFR, for late March to late April shipment. While this deal has not been confirmed by the buyer or the seller, it is widely believed to be done yesterday, March 8.
Also, an Izmir-based mill has reportedly concluded an ex-US booking for 18,000 mt of HMS I/II 80:20 scrap and 12,000 mt of bonus grade scrap at the average level of $467/mt CFR, for April shipment. Some market sources state that this deal might be done last week. According to this information, the HMS I/II 80:20 scrap price is estimated to be in the range of $457-460/mt CFR Turkey.
Meanwhile, another ex-US transaction has been done by a steelmaker in the Izmir region for 12,000 mt of HMS I/II 80:20 scrap at $456/mt CFR, 12,000 mt of shredded scrap at $466/mt CFR and 1,000 mt of bonus grade scrap at $466/mt CFR. Prior to these deals, SteelOrbis’ estimation for ex-US benchmark HMS I/II 80:20 scrap was in the range of $460-465/mt CFR Turkey.
Today, a lot of sellers are active in the Turkish scrap market, seeking opportunities to sell deep sea cargoes to Turkey. Seeing this situation, Turkish mills have taken a step back, exerting pressure on prices. Turkey still needs cargoes for shipment in April. Some market sources state that Turkey will buy at least 15 more cargoes for this period. Also, a Marmara based producer has concluded a sale to Singapore for 50,000 mt of rebar at $685/mt CFR on theoretical weight basis, for May shipment. Some sources state that, if Turkey’s rebar sales to the export markets continue in the coming days, the need for scrap cargoes for April shipment would also increase. On the other hand, a major European supplier stated that scrap collection is still slow in the region, freight costs are still on the high side and China is still strong, adding that the lack of prime grades in the US is also impacting the EU scrap market.