Turkey’s import scrap market has been seeing a lot of offers from the US and the Baltic region, while another ex-US scrap deal has been disclosed to the market today, June 30.
SteelOrbis has learned that the deal in question has been done by a Marmara-based Turkish mill, with HMS I/II 80:20 scrap standing at $497/mt CFR, for July shipment. It is rumored that there is 10,000 mt of shredded scrap in the cargo and that the premium is $15/mt. Prior to this deal, ex-US HMS I/II 80:20 scrap was bought at $499/mt CFR by an Izmir-based mill on June 24.
European scrap suppliers are still comfortable amid the strong demand they have been receiving from their domestic markets. Especially, prime grades such as shredded and bonus scrap are bought at higher premiums inside the EU region and some market players state that the premium for shredded scrap has reached $40/mt in some cases. One market source has reported that HMS I/II 80:20 was recently sold to Italy from another European country, with the price equal to $510/mt CFR Turkey. On the other hand, some market players report that there are plenty of offers from the US and the Baltic region, with some indicating eight offers in total. One supplier from these regions said that there is no lack of offers in the market for now, though these cargoes will be collected in the coming period under pressure from increasing freight numbers due to the ongoing grain season as well as high collection costs. Sellers are currently targeting the range of $500-505/mt CFR Turkey for HMS I/II 80:20 scrap, SteelOrbis understands, while Turkish mills are not ready to accept this range and are asking for closer to $500/mt CFR.
The slow trading activity in the rebar segment is taking its toll on the scrap market. As Turkish mills are failing to sell rebar to their domestic and export markets, prices are decreasing gradually. The spread between rebar and scrap prices is now at around $200/mt and producers are trying to keep this spread stable as they consider deep sea scrap purchases. Turkish mills are still offering rebar for export for August shipment. It is observed that, not only are rebar prices decreasing, but wire rod and merchant bar prices are also softening, while some players state that there have even been sales closed at levels lower than producers’ official list prices in all three categories.