Turkey successfully continues to exert pressure on deep sea scrap prices, while US-based suppliers are accepting lower levels. The number of available offers, despite those that some sellers have already withdrawn, still negatively impacts sentiment. Overall, market players believe there is more room for deep sea scrap prices to move down.
SteelOrbis has learned that an Iskenderun-based Turkish producer has concluded a deal from the US for HMS I/II 80:20 scrap at $376/mt CFR and bonus grade at $396/mt CFR. This deal has reduced ex-US scrap prices by another $2/mt from the levels recorded yesterday, March 6.
Meanwhile, two separate deals from Romania have been concluded by Turkey, with the HMS I/II 80:20 scrap price at $355/mt CFR. As SteelOrbis mentioned before, the pressure which had built up on short sea scrap has caused a sharper decline in prices.
Several sources surveyed by SteelOrbis said price inquiries have been made by Turkish mills, but the price ideas of producers and sellers are very different from each other. Today, a seller commented, “There is at least $10/mt of a gap between them. There are several offers coming out of the US. The US domestic scrap market may decrease by another $20/mt as compared to the initial expectations. Therefore, US suppliers are still aggressive.” SteelOrbis hears that at least four ex-US cargoes are in the market looking for buyers. Also, the number of cargoes in the Baltic region has attracted attention, although some of the Baltic-based sellers have taken a step back, saying the current price levels voiced by Turkish mills are not attractive enough. On the EU side, there are at least eight offers seeking buyers. For the coming two weeks, Turkish rebar traders are inclined to wait and monitor the market instead of restocking. Although their inventory levels are lower than usual, they think rebar prices will move down in line with the scrap market. “There may be some trading in the second half of Ramadan. We do not expect much before then,” a trader commented. As negative sentiment persists in Turkey’s import scrap market, international steel and scrap prices also provide little support. As a result, a further decline is anticipated in both cases in the coming days.