Turkey’s ex-EU scrap prices have relatively remained stable this week. While the number of offers is currently on the high side, some Turkish mills are also seeking deep sea cargoes. However, the market is not in equilibrium and the current conditions favor the Turkish mills.
A Marmara-based Turkish producer has concluded an-UK deal with the HMS I/II 80:20 scrap price standing at $412/mt CFR. The total tonnage in the cargo is 22,000 mt. Before this deal, SteelOrbis’ reference price for European HMS I/II 80:20 scrap was at $412.5/mt CFR on average and it has now been revised to $412/mt CFR.
An Amsterdam-based scrap exporter has shared bids with Germany for HMS I/II 80:20 scrap at €335/mt DAP and bonus grade scrap at €360/mt DAP, SteelOrbis has learned. A sub-collector commented, “Despite the good level of prices, there is a significant sluggishness in the market. Also, there is a big problem with the flow of turnings scrap.” SteelOrbis hears that scrap sales from the EU to India are still disrupted by the ongoing crisis in the Red Sea. On the other hand, import scrap buying in India has remained subdued amid reports that arrivals at ports of previously booked tonnages have been delayed and that Indian secondary mills are unwilling to conclude further bookings, in order not to tie up funds. Most offers for imported shredded scrap in containers originating from the EU and the UK to Pakistan have remained at relatively the same levels as compared to last week. Meanwhile, after quite a high number of deals were signed last week, this week most Pakistani buyers have been inactive due to slow end-user demand ahead of the upcoming elections in February. The recent rise in workers’ wages is also pushing up steel prices, though the increase in prices has not been digested by the market for now. One trader said that demand was not sufficient to support the previous rebar prices, let alone the new increased prices.