Turkey’s import scrap market has experienced a relatively silent week as Turkish mills are close to completing their purchases for August shipments.
A rumor of an ex-Netherlands booking by a Marmara-based producer for HMS I/II 80:20 scrap heard at $382.5/mt CFR, meaning a drop of $0.5/mt on average, has raised the question of a potential softening in prices. A European scrap seller said a softening is possible in the coming month since Turkey has bought large tonnages of import billets at more attractive prices. “They have ordered huge tonnages. They can order more in the coming month. The price will be determined by sellers’ attitudes. This month there was not a high number of offers shared with Turkey. If it remains like this, prices may remain firm. If not, a downward movement is possible,” the source said.
Also, a deal from Denmark was closed by a Black Sea-based steel producer with the HMS I/II 80:20 scrap price at $389/mt CFR, market sources report. This level is also $1/mt lower than the previous ex-Baltic booking done by Turkey and means a $0.5/mt drop in the average price.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved down by 0.13 percent week on week. The prices are now 0.06 percent higher month on month in the deep sea segment, with prices being in the range of $382.5-390/mt CFR.
US scrap prices for August are now seen at strong sideways with some reporting prices could rise by as much as $20/mt ($20/gt) across all grades on a delivered-to-mill basis from July levels, as inventories at local scrap yards in the US Northeast and Midwest dwindle amid reduced collection, low finished steel demand, and lower reported manufacturing and construction activity, SteelOrbis has learned this week from scrap market insiders and recent government and industry reports.
SteelOrbis has learned that the current price for Mexican domestic shredded scrap has remained unchanged over the past week at MXN 7,050/mt ($374/mt). Additionally, HMS I/II scrap prices have decreased by MXN 150/mt ($8/mt) over the same period to MXN 5,050/mt ($268/mt).
Although some Italian steel mills have adjusted their scrap purchase prices further, the general price range in the local Italian scrap market has remained unchanged. According to sources, scrap consumption is at a very low level due to the imminent summer shutdowns of steel mills (some have already begun) and the difficult situation in the finished steel market.
In Spain, prices in the local scrap market have decreased by €10/mt as local mills adjusted their price lists to the prices announced last week by a major producer. According to sources, demand continues to be rather low due to ongoing production stoppages.
The local German scrap market has moved down over the month of July due to the lack of support from the local and export markets. According to the latest data provided by the Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V, in the first 20 days of May scrap prices moved down by €2.5-9/mt month on month. Additionally, the year-on-year increase was in the range of €28.8-52.1/mt.
The leading Japanese EAF steel producer Tokyo Steel has announced a JPY 500-1,000/mt price cut in domestic scrap purchase prices. As a result of the recent three reductions in its purchase prices, the producer had decreased its H2 grade purchase prices by JPY 1,000-1,500/mt in total, while its shindachi scrap prices have also been reduced by JPY 1,000-1,500/mt, both week on week.
Due to the strong typhoon hitting Taiwan as of Wednesday, there was only two days of trading in the country. Offers for ex-US HMS I/II (80:20) scrap in containers have moved up from $347-352/mt CFR to $350-355/mt CFR. Ex-Japan offers for H1/2 (50:50) scrap by bulk to Taiwan moved down slightly on the upper end by $2/mt over the week, to $360-363/mt CFR.
SteelOrbis hears that mills in the southern part of South Korea have started to increase their domestic scrap purchase prices this week by approximately $7-14/mt. While domestic HMS I scrap prices in Southern South Korea are now at around $290/mt DDP producer, there are a few producers paying $305-310/mt DDP producer for the same grade.