Turkey’s import scrap market is currently at a crossroads with some players being still cautiously optimistic, while others have a contrary view. In particular, the most recent ex-Baltic scrap deal price is considered by some market players to mark a relative stabilization, although the level is slightly lower than the initially evaluated one. In addition, there is a certain resistance from scrap suppliers to providing discounts from the current levels. However, the sharp drop in China, coupled with the low business activity in Turkey’s finished steel segments, still exerts pressure on workable import scrap prices.
A scrap deal from Lithuania for an April shipment scrap cargo has been concluded by a Marmara region-based steel producer. The cargo consists of 33,000 mt of HMS 1&2 (80:20) scrap at $378/mt CFR and 15,000 mt of bonus and railway scrap at $398/mt CFR. In addition, another ex-Baltic region (Poland) scrap lot was previously closed at $378/mt CFR for HMS 1&2 (80:20) and $398/mt CFR for bonus, to the Iskenderun region of Turkey. The deal is for shipment at the beginning of April and it circulated earlier in the market as having been done by another mill in the same area of Turkey. The previous estimated level for ex-Baltic scrap was at $380-383/mt for HMS 1&2 (80:20), following the ex-France deal done at $377.5/mt CFR, as SteelOrbis reported earlier.
Currently, the scrap market reflects mixed expectations regarding the further trend, particularly given the recent downturn in China, which affects sentiments globally. Many believe it will be difficult for Turkish mills to accept scrap far above $380-385/mt CFR given the weak finished steel market, while deep sea scrap suppliers may not be in a position to provide discounts from the current levels, taking into account their collection costs. “In Europe, collection is nowadays at €295-300/mt delivered and the flow is not great. It’s the equivalent of around $370-375/mt CFR Turkey for 80/20 scrap. For the US, the breakeven should again be at around $370/mt CFR now,” a trader told SteelOrbis.
According to sources, some deep sea scrap suppliers have chosen to take a step back for now, while there is a certain amount demand from Turkish buyers in the market. According to reports, the target prices of sellers are at $380/mt CFR minimum at the moment. In addition, according to market information, US suppliers are currently out of the market, thus giving other scrap sellers some leverage.