With deals disclosed to Turkey’s import scrap market, it can be observed that deep sea scrap prices are moving up with a very slow pace.
SteelOrbis has learned that an ex-Netherlands deal was closed by a Black Sea-based producer for HMS I/II 80:20 scrap at $381/mt CFR, shredded and bonus grades at $401/mt CFR. Two ex-UK bookings were reportedly done by two other mills with the HMS I/II 80:20 scrap standing at $380/t CFR and bonus grade scrap at $400/mt CFR. European scrap quotations have merely increased by $1/mt with these deals.
An ex-US booking was closed by an Iskenderun-based producer for HMS I/II 95.5 scrap at $394/mt CFR and bonus grade scrap at $404/mt CFR. According to the information in hand, HMS I/II 80:20 scrap prices are at around $385-385.5/mt CFR. Another ex-US deal was reportedly done by another mill in Iskenderun for HMS I/II 80:20 scrap at $387.5/mt CFR, shredded and bonus grade scrap at $407.5/mt CFR, for May shipment. As a result, ex-US scrap prices have increased slightly by $2.25/mt CFR.
Meanwhile, an ex-Denmark transaction was closed by a Marmara-based mill for HMS I/II 80:20 scrap at $382/mt CFR, bonus grade scrap at $402/mt CFR. Ex-Baltic scrap prices have remained stable.
European sub-collectors report that collection prices of export yards are also moving up, currently they are at around €310-313/mt DAP increased from €300-305/mt DAP recorded last week. European sources still point out the lack of scrap availability, many believe that European scrap prices have hit the bottom at $380s/mt CFR. “Current price levels work as we can see from the bookings, the lack of steel demand in Turkey is problematic,” a European scrap seller commented. Rebar spot prices in Turkey have settled at $589-612/mt ex-warehouse, depending on the region. Icdas kept its official dollar-based rebar price stable at $620/mt ex-works. The general official rebar price range in the Marmara and Izmir regions varies at $590-610/mt ex-works, versus $600-620/mt ex-works a week ago, while an additional discount is applicable for serious buyers only. Turkish rebar traders surveyed by SteelOrbis mention there is little activity in the spot market. According to a trader in Marmara region, “Cash flow mechanisms are disrupted, no one buys rebar unless they have an urgent need. Some even seek ways to postpone those urgencies.” Another source in the scrap segment thinks another point of stalemate is reached between finished steel and scrap segments, “There is an observable availability problem in the EU, while we can also see that Turkish mills are failing to increase their rebar prices. But as suppliers, we can no longer accept losses and are expecting prices increase.” Another comment from a seller mentioned that the strength of the deep sea scrap market will be determined by the US sellers, “If they can maintain their prices, Europeans are ready to increase their offers to Turkey.”