Turkish mills continue to exert pressure on deep sea scrap prices, while they are also buying scrap at a slow pace.
As indicated by rumors today, May 8, a producer in the Izmir region has signed a deal for an ex-UK scrap cargo with HMS I/II 80:20 scrap standing at $377/mt CFR. Although this deal has not been confirmed by the buyer or the seller, most market sources believe that it has in fact been done. The price is $1/mt lower than the previous ex-Europe booking, indicating that the downward pressure on prices is having an impact, though a small one for now.
A market player commented on the current situation stating that there is some room for European scrap prices to move down, adding, “Collection prices in the UK are at around $315/mt delivered to dockside. There may be a softening on the European side if the domestic market does not support a firm stance.” The sentiment in the US has also changed recently and market players state that a downward push is seen in the market with HRC prices being cut. For now, deep sea scrap prices in Turkey are expected to remain in the range of $377-383/mt CFR. As SteelOrbis reported today, import scrap prices in India have hardened as fewer sellers have been active in the market due to challenges facing shipping, but deals have been limited at the same time with buyers becoming cautious and submitting lower bids. Additionally, there are some Turkish rebar exports heard in the market, with four mills having successfully concluded rebar sales to various destinations. While the details have not been fully confirmed, two of the sales were done in the range of $580-585/mt FOB.