Two scrap deals from last week have been disclosed to the Turkish market today, April 6.
SteelOrbis has learned that an Iskenderun-based steelmaker concluded an ex-Murmansk transaction last week for approximately 20,000 mt of HMS I/II 95:5 scrap at $430/mt CFR, for May shipment. Market sources stated that ex-Baltic HMS I/II 80:20 scrap prices are estimated to be in the range of $422-425/mt CFR, according to this information. Prior to this deal, SteelOrbis’ forecast for ex-Baltic benchmark scrap was in the range of $427-430/mt CFR.
Also, it is heard that an ex-Netherlands cargo was sold to an Izmir-based producer last week, with HMS I/II 80:20 scrap at $421/mt CFR, for May shipment. Prior to this deal, SteelOrbis’ estimation for ex-EU HMS I/II 80:20 scrap was in the range of $417-425/mt CFR Turkey.
Market sources state that sentiment remains positive in Turkey’s import scrap market as suppliers are unwilling to cut their prices to mills’ targeted levels. On the other hand, Turkish mills are relaxed as regards concluding deep sea scrap purchases against the backdrop of the offers in the market. One market player stated that there is resistance in the market, preventing the upward movement of prices. Ex-Baltic suppliers are targeting $430/mt CFR Turkey, SteelOrbis understands, though no new transactions have been closed at that level for HMS I/II 80:20 scrap. One European scrap trader stated that his suppliers are unwilling to accept bids at $420/mt CFR Turkey, targeting $425/mt CFR and above. Additionally, one market player commented that, if scrap suppliers stand firm on their offers, the international indicators point to an increase in scrap quotations.
Meanwhile, prices in the local Turkish rebar market are still below the export quotations fixed in the latest deals, which attracted attention as this is unusual for the market. Domestic rebar demand in Turkey is still sluggish, though some tonnages have changed hands over the past days but mostly between traders. While Turkish rebar producers’ delivery times have lengthened, they are waiting for the end of the Easter holidays to see a clearer trend for European scrap prices, as one market player stated.