As Turkey continues to sign ex-US scrap deals, small price increases continued to be seen in the bookings done.
SteelOrbis has learned that an ex-US transaction was done by a Marmara-based producer for HMS I/II 80:20 scrap at $390/mt CFR and shredded scrap at $410/mt CFR. The cargo will be shipped in August. This price is $0.5/mt higher than the previous ex-US deal.
Market sources report that there is negative sentiment regarding the local US scrap market’s settled prices for July. Some US-based producers have announced order cancelations for scrap given their already high inventories and due to their expectations of a downward movement in the scrap market. Meanwhile, European collection prices remain firm in the range of €320-325/mt DAP. A European scrap supplier commented, “This means Europeans should aim for $390s/mt CFR. But I do not think that is achievable. Hence, I believe $385/mt CFR Turkey for ex-EU HMS I/II 80:20 scrap will continue to work.” US-based scrap suppliers report that flow to yards is not so strong and that the negative sentiment in the local market may not be fully reflected in their prices. US-based scrap sellers rarely accept lower than ex-EU scrap prices.
Meanwhile, import scrap prices in India have showed mixed trends amid a slight improvement in buying heard from secondary mills in the western region of the country and with some sellers agreeing to marginally lower prices to conclude deals, while the overall mood has continued to be cautious. This week, import scrap offers in Pakistan have remained largely unchanged, though a number of deals for ex-EU/UK shredded scrap in containers have been reported at slightly higher levels as compared to last week.
Turkish rebar producers are still facing significant challenges in exports and are struggling to find buyers. However, prices have mainly remained stable due to the relative stability of import scrap prices. In addition, Turkish mills are reluctant to provide discounts given the recent electricity price hikes in Turkey. Currently, Turkish rebar export prices for late July-August shipment vary at $580-585/mt FOB, unchanged week on week. Turkish mills’ domestic rebar offer prices are in the range of $590-605/mt ex-works.