While Turkey is trying to fulfill its deep sea scrap procurement needs for May shipment, prices continue to move up at a slow pace. The reason behind the increases is the low availability in the EU and the firm stance of sellers due to pressure from their collection prices. Also, alternative markets such as India are active and some scrap suppliers in the Baltic region and in Europe say they prefer to send materials to India instead of Turkey due to the more attractive.
SteelOrbis has learned that an Izmir-based producer has concluded an ex-US deal for HMS I/II 90:10 scrap at $389.5/mt CFR, shredded scrap at $406.5/mt CFR and bonus grade scrap at $406.5/mt CFR, for May shipment. According to this information, HMS I/II 80:20 scrap stands at around $386-386.5/mt CFR, similar to the current prices for ex-US scrap.
Meanwhile, two ex-Europe deals were shared late yesterday. A Marmara-based producer has concluded an ex-Germany deal with HMS I/II 80:20 scrap standing at $381/mt CFR and shredded and bonus grade scrap at $401/mt CFR. Another rumor indicates that an ex-UK booking was done by the same producer for HMS I/II 80:20 scrap at $383/mt CFR. As a result, ex-Europe HMS I/II 80:20 scrap currently stands at $382/mt CFR on average, $2/mt higher than the previous level.
Baltic region-based scrap sellers report that their collection prices stand at €325/mt DAP and above, while Polish scrap sellers report that mills in the country are currently paying €330/mt DAP for HMS I grade. Meanwhile, Belgium and Amsterdam-based export yards have given bids for ex-Germany scrap at around €310-320/mt DAP. Suppliers are expecting deep sea scrap prices to increase for Turkey in the coming week, citing Turkey’s need for cargoes to be shipped in the first half of June. Import scrap prices in India have inched up riding on improved buying interest and the rush to book scrap in view of the tightening of local supplies and the anticipated increased demand for finished steel after the national elections are over in June. Import scrap activity in Pakistan has been mainly moderate, with many buyers holding back in anticipation of a clearer price direction. At the same time, those customers who have remained in the market have continued to push for additional discounts. A European scrap seller said that they are receiving demand from Turkey for May shipments, adding that Turkey needs ten more cargoes for this shipment period. Turkish mills are buying deep sea scrap at a slow pace and this trend is expected to continue due to weak finished steel demand. “Producers may conclude purchases if they receive demand or sign new deals. For now, we do not see any improvement in the steel demand segment,” a source commented. As a result, SteelOrbis expect Turkey’s import scrap market to move up but, due to the stalemate between the steel and scrap markets, the pace of the upward trend will be slow.
SteelOrbis hears that scrap exporters based in Greece, Italy and France are seeking prices higher than $380/mt CFR Turkey. Meanwhile, offers from Romania and Bulgaria are on the low side, with sellers saying that the current levels in the range of $365-370/mt CFR do not compensate for their collection prices. An Israeli scrap seller said that during negotiations the price range was in the range of $360-365/mt CFR and that a price increase is expected in the coming days.