Ex-US scrap prices in Turkey have continued their downtrend in two new deals. The sentiment for the coming month is still bleak.
Both ex-US bookings were done by the same buyer in the Marmara region. One of the cargoes consists of 12,000 mt of HMS I/II 80:20 scrap at $352/mt CFR and 18,000 mt of shredded and bonus grade scrap at $372/mt CFR. The second deal also has HMS I/II 80:20 scrap at $352/mt CFR and higher grades priced at $372/mt CFR. As a result, ex-US scrap prices have declined by $2.75/mt.
Sentiment in Turkey’s steel market is mainly negative for the coming month. At least three mills are expected to announce stoppages in August. Some sources voice their expectations of a week-long break for all producers next month. Meanwhile, Hafize Gaye Erkan, the new president of the Turkish Central Bank, has announced that expectations regarding year-end inflation rates have been revised sharply from 22.3 percent to 58 percent, despite the tighter monetary policy followed by the bank. A European supplier said he is focusing on other destinations for now for inventories on hand, while taking a break from new purchases. “The price ideas of buyers and sellers at all stages of the scrap business are different from each other,” the contact said. Additionally, the local Turkish rebar market is very silent, with a trader commenting, “Nothing can break the silence.”
On the other hand, short sea scrap prices are also following the general trend and are moving down. Ex-Romania HMS I/II 80:20 scrap prices are now in the range of $320-325/mt CFR, while an ex-Israel cargo was closed at $310/mt CIF Iskenderun for HMS I/II 75:25 scrap.
