Turkey has continued to buy ex-US cargoes, with the HMS I/II 80:20 scrap prices in the deals remaining stable. Meanwhile, SteelOrbis hears that there are offers in the market from all the supplier regions and that the sellers are seeking higher price levels, citing slow scrap flow, high collection prices and increasing freight rates.
The ex-US deal which surfaced in the market today was done by an Iskenderun-based producer for 15,000 mt of HMS I/II 90:10 scrap at $395/mt CFR, 10,000 mt of shredded scrap at $410/mt CFR and 5,000 mt of P&S grade scrap at $410/mt CFR. The cargo will be shipped in mid-August. These levels show that the HMS I/II 80:20 scrap price is still at $390/mt CFR for US material.
Market sources also report that there are buyers in the market, but Turkish mills are still trying to exert pressure on prices to prevent further price increases. As sellers in the EU are reporting they do not have enough margins at the current levels, they are also sharing higher offer prices at around $385-387/mt CFR. Baltic suppliers are also aiming for $390/mt CFR Turkey. “The market remains stable this week due to Turkish mills’ reluctance to accept higher prices. However, in the coming weeks, we hope higher figures can be recorded in actual deals. Turkish mills still need cargoes to be shipped in the first half of August. This means they need to decide quickly since finding vessels for this term will be difficult within a couple of days,” a supplier commented. Another source said, “For now, the Europeans’ pricing strategy is dependent on the prices recorded in ex-US deals. This means they have to offer at around $385/mt CFR for continental HMS I/II 80:20 scrap. But this does not seem sustainable in the short term.” SteelOrbis agrees that most Turkish mills will look for cargoes to be shipped in the first half of August, while also realizing that Turkish mills’ margins are tight. 12 mm rebar spot prices in Turkey have settled at TRY 22,800-23,900/mt or $584-612/mt ex-warehouse, depending on the region, at an exchange rate of $1 = TRY 32.56. The workable rebar prices in the Izmir and Marmara regions still vary at $585-600/mt ex-works, for serious buyers and cash payment only.
Meanwhile, offers from Romania and Bulgaria are at levels of $375/mt CFR Turkey. For Italian HMS I/II 80:20 scrap, offers stand in the range of $380-385/mt CFR Turkey.