Continuing its downward trend, Turkey’s import scrap market has not slowed down in early May. No quick recovery in Turkey’s steel markets is expected ahead of the presidential and parliamentary elections to be held on May 14.
SteelOrbis has learned that an ex-US cargo was bought by an Iskenderun-based mill with HMS I/II 80:20 scrap at $397/mt CFR, and shredded and P&S grade scrap at $417/mt CFR. This level is $7/mt lower on average than the previous levels.
Meanwhile, Turkey’s short sea scrap prices are moving down at a quicker pace. A Romanian cargo was sold to Turkey’s Marmara region with the HMS I/II 80:20 scrap price standing at $350/mt CFR. A Romanian seller reports that this level is now hard to achieve, and that levels in the $340s/mt CFR may be easier for mills to accept. As for Israeli scrap, SteelOrbis hears that there are no bids from Iskenderun-based mills which are the usual buyers of Israeli material.
A Germany based sub-collector said today, May 3, that an Amsterdam-based scrap exporter has cut its collection prices to €290/mt DAP for HMS I/II 70:30 scrap. Late last week, its price was at €320/mt DAP. While grades in Europe that are usually meant for export can be found more easily nowadays due to sellers’ expectations for a continued downtrend, SteelOrbis has learned that the same cannot be said for higher grades such as shredded and bonus. “These grades can go to European producers, and we are having a hard time finding lower prices or even enough volumes for them,” the sub-collector commented. Another interesting development regarding Europe’s interest in keeping scrap within the region is that, now that scrap export prices are declining sharply and European mills are not cutting their procurement prices by the same sharp margins, European scrap collectors may be more willing to go to inland shredders instead of export yards. One European source said that with a cap set for electricity prices, this may now make more sense.
There are actual rebar sales in the local Turkish market with prices standing at around $650s/mt ex-works. However, due to the approaching elections, traders in the market are maintaining their cautious stance, and some do not believe there can be a price recovery in the short term. Turkey’s rebar export prices are still at $660/mt FOB, at least for now. The latest deals for Russian billet late last week were in the range of $565-570/mt CFR. Russia is on holiday this week but its offers are also expected to decline when it returns from the holiday. Buyers are targeting $550/mt CFR for this material, while Iranian billet offers are at $530-540/mt CFR this week. Additionally, the flat steel market is expected to move down in May, though it may rebound slightly at the end of the month. Adding Turkey’s vulnerable economic situation, most market sources believe that May will be another slow and pessimistic month with all players remaining extremely cautious.