Turkey has bought two more deep sea cargoes, one from the US and one from the Baltic region at the same price level.
SteelOrbis has learned that an Iskenderun-based Turkish steelmaker concluded the ex-US deal late yesterday, April 27, with the HMS I/II 80:20 scrap price at $432/mt CFR. The cargo will be shipped in June. Prior to this booking, SteelOrbis’ price estimation for US origin HMS I/II 80:20 scrap was in the range of $430-435/mt CFR.
Meanwhile, a Black Sea-based producer has concluded an ex-Denmark transaction for 22,000 mt of HMS I/II 80:20 scrap at $432/mt CFR. This cargo consists only of HMS I/II 80:20 scrap and will be shipped also in June. Prior to this booking, the most recent ex-Baltic transaction was closed at $427.5/mt CFR for Estonian HMS I/II 80:20, though SteelOrbis’ forecast for ex-Baltic benchmark scrap quotations was in the range of $427.5-430/mt CFR Turkey.
SteelOrbis observes that sellers are taking a step back amid the positive sentiment in the market. China’s official statement of the cancelation of their export tax rebates is expected to benefit Turkey’s finished steel exports to the markets where Chinese steel holds a big share. Also, a potential increase in Turkey’s long steel exports could lower the pressure resulting from the lack of trade in the local Turkish market. Some market players believe higher exports may mean higher prices, but lower volumes for the local Turkish rebar market, but this remains to be seen. Today, April 28, some sellers stated that the price rises that they have anticipated may happen more quickly. Recently, most market sources had voiced their expectations of a slow upward movement in Turkey’s import scrap market for the coming period, but the mood has become more optimistic after the news from China. One European supplier stated that prices may increase more quickly than their initial estimations, adding that the strategy of sellers will be a determining factor for the price trend. A major European scrap supplier stated that demand is lively in the international scrap market, not just in Turkey. Also, collection prices in all supplying regions have increased and are not expected to move down in the short term. US-based scrap sellers are waiting for the settled local prices for the May-buy cycle, while no downturn is expected.