As the number of deep sea scrap offers to Turkey increased after prices reached $364-372/mt CFR in the deals done this week, the uptrend of prices has come to a halt, as expected by SteelOrbis.
SteelOrbis has learned that an ex-Estonia deal was concluded by a Marmara-based mill, with HMS I/II 80:20 scrap standing at $367.5/mt CFR. This price is a little lower than the previous ex-US deal done earlier this week at $372/mt CFR.
On the short sea side, SteelOrbis has learned that an ex-Adriatic deal was closed at $356/mt CFR for HMS I/II 80:20 scrap.
The main reason for deep sea scrap prices to move up was the lack of offers to Turkey, which is now ceased as mainly suppliers returning to the market. SteelOrbis hears that the offers in question are mainly from the US. Local US scrap market is expected to perform soft in October, leading exporters to evaluate the bids they are hearing from Turkey. “I do not think that above $370s/mt CFR Turkey will be achieved again,” a US-scrap supplier commented. “Some finished steel should change hands, Turkish steel exports are still on the low side and the high levels of rebar are failing to find buyers amongst traders,” another one reported. While Russian billet flow to Turkey is now slower, names of Iran and Azerbaijan are more frequently heard this week, offers being at $535/mt CFR.
On the other side, the hike in Turkey’s energy prices is expected to have an impact on production costs for manufacturers. While details are still being evaluated by market players, costs are expected to move up due to this latest development. SteelOrbis has already reported that some Turkish mills have maintained aggressive price policies over the past week and reduced their ex-works rebar prices with discounts. However, demand had failed to improve. Just yesterday, September 29, Turkish mills domestic rebar prices were in the range of $690-700/mt ex-works, but today it is observed that mills are announcing higher levels at $715/mt ex-works. The demand situation remains to be seen and may lead to another quiet period for scrap until a balance is achieved in the steel market.
