Having procured most of their scrap needs for June shipments, Turkey is still in the market to complete its purchases for this shipment period and to even start buying for July shipments.
SteelOrbis has learned that an ex-Belgium scrap deal was done by an Iskenderun-based producer on Friday, May 24, for HMS I/II 80:20 scrap at $374/mt CFR and shredded and bonus grade scrap at $399/mt CFR. As a result, ex-EU benchmark scrap prices have recovered slightly to $372-374/mt CFR.
Market sources report that there are at least three ex-US cargoes available for Turkey right now, with a similar number of European scrap sellers waiting for bids. However, there is almost the same number of buyers in the market. Hence, Turkey’s import scrap market may be considered to be in equilibrium for now, with deep sea scrap price expectations remaining in the range of $372-380/mt CFR. An ex-EU scrap seller said that their prices will remain in the range of $370-375/mt CFR. Another European scrap supplier stated that there is significant pressure on deep sea scrap quotations to Turkey but added that, if their collection prices do not decline, they cannot accept lower prices. The collection prices of European scrap sellers have softened to €310-315/mt DAP, and in some rare cases to €305/mt DAP, though scrap flow has slowed down further. The US scrap market for June is now foreseen to trend from sideways to $10-20/nt ($11-22/mt), lower compared with the May settled scrap prices, as domestic steel demand continues to be slack, even while steel scrap imports into the US declined month on month, as industry data show. Turkey has concluded rebar exports to a few regions, with prices mostly at around $570/mt FOB, giving only very small margins to the sellers.
Meanwhile, the workable levels for Lebanese scrap cargoes in Turkey are considered to be in the range of $340-345/mt CFR. SteelOrbis has heard that the sellers’ price ideas are higher at around $350-355/mt CFR, but none of the Turkish mills are showing interest in these levels. Since ex-Israel HMS I/II 75:25 scrap is banned for Turkish buyers, alternative sources from the Mediterranean region will be heard more frequently in the future.