After a relatively silent week, there were rumours of ex-US and ex-EU scrap deals circulating in Turkey’s import scrap market on February 15. While the information surfacing in the market was denied by one of the parties, the prices voiced did not surprise market players.
Due to the unwillingness of Turkish mills to conclude purchases this week, sentiment was already negative in Turkey’s import scrap market. While market sources report that there are still several ex-US cargoes available in the market, European scrap sellers are mostly keeping away. In the meantime, some European sellers have preferred to sell their cargoes to Egypt, SteelOrbis has heard. A German scrap sub-collector reported that export yards’ bids have also moved down, to €340-345/mt DAP. As a result, SteelOrbis has reduced its reference prices for HMS I/II 80:20 scrap to $415/mt CFR and $410-412/mt CFR for ex-US and ex-EU scrap, respectively. It should also be added that some Turkish mills’ targeted prices for these regions are below these revised levels.
Following the developments on February 15, another ex-Netherlands deal has been confirmed by market sources, concluded by an Izmir-based Turkish steel producer with HMS I/II 80:20 scrap standing at $411/mt CFR. This level remains within SteelOrbis’ estimated range for ex-EU scrap at $410-412/mt CFR. Also, sources from Turkish mills insist they will be able to find more attractive prices in the coming week. As the downward pressure on deep sea quotations continues, short sea sellers are also active in the market. They have waited a long time, resisting Turkish mills’ lower bids, but it seems their mood has changed over the past week. Short sea scrap cargoes may provide some more time for Turkish mills before they accept deep sea cargoes.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved down by 1.14 percent week on week. The prices are now 2.14 percent lower month on month in the deep sea segment, with prices being in the range of $410-415/mt CFR.
SteelOrbis has learned that the dock-delivered price range for HMS I/II 80:20 scrap in Newark, New Jersey, is now at $310-$320/gt delivered, compared to $315-$320/gt delivered two weeks ago.
SteelOrbis has learned that the current price for Mexican domestic shredded scrap is now at MXN 7,900/mt ($450/mt), compared to MXN 8,650 ($494/mt) a week ago. Additionally, HMS I/II scrap prices are now being heard at MXN 6,250/mt ($356/mt), compared to MXN 7,000/mt ($400/mt) last week.
Although Italian steel mills have been trying to reduce scrap purchase prices since the beginning of February, local Italian scrap prices have remained unchanged for the second week in a row. In fact, according to several sources, trading activity has been sluggish over the past week, but steel mills have confirmed scrap prices at unchanged levels. At the moment, market participants report a substantial balance between supply and demand and expect the picture to remain unchanged until early March. Next month, however, the situation could change: should demand from steel mills improve in March, in fact suppliers would then be hard-pressed to meet it, and this tension could lead to a new price increase.
The leading Japanese EAF-based steel producer Tokyo Steel has increased its scrap procurement prices for its Utsunomiya plant, after the drop announced on January 26. Germany has risen to third place on the list of the world’s biggest economies, with Japan entering a recession. Tokyo Steel’s general range for H2 grade scrap has remained unchanged at JPY 50,000-53,000/mt ($333-353/mt) depending on the mill.
Taiwan’s import scrap market has moved down over the past two weeks, which have included a holiday period. Due to the ongoing holiday in China, Taiwan is monitoring the market but has not made a significant move in terms of rebar trading. Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have moved down over the past two weeks to $372-382/mt. Japanese scrap suppliers’ offers for H1/2 (50:50) scrap by bulk to Taiwan have moved to $380-391/mt CFR over the past two weeks.
Vietnam has returned to the markets from its Lunar New Year (Tet) holiday, though some buyers have extended their holiday. As a result, finished steel and scrap transaction activity in the country has remained slow. Some market players expect import scrap prices to move down further. Vietnamese buyers’ bids for Japanese grade H2 scrap are still in the range of $390-395/mt CFR, with sellers’ ideas remaining higher. Ex-US West Coast HMS I/II 80:20 offers for bulk cargoes to Vietnam are at $405/mt CFR.
SteelOrbis’ reference price for ex-Japan H2 scrap has decreased on the lower end by JPY 500/mt to 51,500-54,100/mt ($343-360/mt).
In Bangladesh, most new offers for imported containerized scrap have decreased slightly and consequently new deal prices are down slightly as well. Specifically, offers for shredded scrap in containers have been heard at $430-435/mt CFR, down by $5/mt week on week. According to sources, following several deals for at least 5,000 mt of ex-Australia shredded scrap at $430-435/mt CFR at the beginning of this week, by the end of the week most offers have dropped to $430/mt CFR, down by $5-10/mt over the past week. At the same time, another deal for ex-EU shredded scrap has been reported at $435/mt CFR. Furthermore, following a deal for ex-Australia HMS I/II 80:20 scrap at $417/mt CFR last week, this week a new deal has been signed at $415/mt CFR, while by the end of the week buyers’ bids have dropped to $405/mt CFR level. Besides, another deal for HMS I/II 80:20 scrap but of US origin has been signed at $410/mt CFR Bangladesh this week, down by $5-10/mt week on week. In the bulk segment, trade activity has been silent this week, with indicative offers for ex-US scrap standing at $415/mt CFR for HMS grade, at $420/mt CFR for shredded and at $425/mt CFR for bonus, down by $10/mt week on week.
In Pakistan, although most offers for import scrap have remained unchanged, market insiders have reported slight decreases from some suppliers. More specifically, offers for ex-UK/EU shredded scrap in containers have been heard at $440-445/mt CFR, against $445/mt CFR last week. Meanwhile, several deals for at least 5,000-7,000 mt in total have been signed in the range of $440-444/mt CFR, against $442-444/mt CFR last week. Furthermore, a few deals are reported to have been signed for ex-US shredded scrap in containers at $435/mt CFR, the same as last week. According to sources, Pakistan’s import scrap market has continued to show rather limited business activity affected by the general economic uncertainty following the general elections on February 8.