As the new week starts with the markets observing the declines recorded in the Chinese futures markets, two deals done last week have surfaced today, November 11, in Turkey’s import scrap market.
SteelOrbis has learned that an ex-Us scrap booking done by a Marmara-based producer was closed for the benchmark HMS I/II 80:20 scrap at $362/mt CFR. This cargo will be shipped in November and the price in question is slightly lower than the levels anticipated at the end of last week. Therefore, SteelOrbis will wait for confirmation by another deal before changing its reference price for ex-US scrap.
The second deal was done by an Iskenderun based producer from Denmark and the benchmark scrap price was $363/mt CFR, $1/mt higher than the previous booking done from the Baltic. SteelOrbis has revised its ex-Baltic HMS I/II 80:20 scrap price to $362-363/mt CFR.
The reaction of the market to the latest stimuli measures announced by the Chinese government on Friday has been negative as again expectations were too high, with the reality lagging behind. Due to the threat posed by the Trump administration to Chinese products, global expectations for China’s stimulus package were high. The Chinese steel industry, which is already facing weak domestic demand and overcapacity, which lead the country to focus on exports, may be affected if Donald Trump implements 60 percent tariffs on Chinese manufacturing goods made with steel, according to a report by Reuters. The tariffs, which may be implemented on the products which are categorized as indirect steel exports, would put 12.78 million mt of indirect steel exports at risk, negatively affecting Chinese steel exporters, who already face tariffs on steel. Some Turkish market sources have voiced their concerns about this late last week, saying the insufficient stimulus package from China may exert pressure on international steel and scrap prices. Today, a European scrap seller commented, “Now, I think Turkish mills will share lower-priced bids. What will the response from sellers be? We shall wait and see.” Another European scrap seller stated, “If scrap suppliers do not panic as they did in the past, deep sea scrap quotations may remain stable.” An international steel trader noted, “We should monitor the import billet offers this week. They may once again become attractive for Turkish mills.” It can be said that the current week in the Turkish steel and scrap markets has started with a cautious mood and the next deep sea scrap deals will determine the price trend.