Two deals done last week have surfaced in Turkey’s import scrap market today, June 13, one ex-Poland and the other ex-UK. Although the price level in the ex-Polish booking is currently considered unworkable, the ex-UK transaction signals another decline for the European benchmark HMS I/II 80:20 scrap.
An Iskenderun-based mill bought the ex-Poland cargo on Wednesday last week, June 8. The HMS I/II 80:20 scrap was sold at $410/mt CFR, which is unlikely to be achieved again after the recent ex-Europe scrap bookings.
The same producer also bought a cargo from the UK, consisting entirely of HMS I/II 80:20 scrap at $380/mt CFR, on Friday, June 10. This is $10/mt lower than the previous cargo sold from Belgium in the middle of last week.
Meanwhile, an ex-Baltic cargo consisting of a total of 40,000 mt of scrap has been sold to another destination, SteelOrbis has learned.
The downtrend of Turkey’s import scrap market continues and Turkish mills have succeeded in achieving lower price levels in each successive booking. Meanwhile, some sources report that collection prices in the EU segment has been reduced to €280-290/mt, while some report that some European scrap exporters have huge inventories in hand. “This is exerting pressure to sell, but also raises concerns about losses,” a seller commented. A German supplier stated that collection prices in Amsterdam are now even at €270s/mt, adding that the major European producers have cut their prices by €115-120/mt month on month. On the other hand, a sub-collector in the EU region reported that scrap flow has been negatively impacted by the recent price cuts, while also pointing out that the holidays have started in the region, which will slow down scrap flow further.
Following the ex-Europe scrap deal above, the short sea segment is feeling significant downward pressure. Ex-Romania deals were closed in the $370s/mt CFR last week, but now it is not possible to achieve these price levels again. Taking into consideration the traditional margins between Black Sea HMS I/II 80:20 scrap and Europe, SteelOrbis estimates the workable levels for ex-Romania HMS I/II 80:20 scrap price to be in the range of $360-364/mt CFR. A Bulgarian supplier commented that in the medium term levels in the $330s/mt CFR Turkey will not surprise them, though SteelOrbis believes that there are some thresholds to pass before this price is reached.
