Turkey has signed at least 11 deep sea scrap deals this week and is very close -if it has not already done so - to completing its scrap needs for July shipment. Ahead of the week-long holiday (June 16-23), Turkey’s deep sea scrap quotations had moved up by $7/mt as compared to the levels recorded in early June. After the holiday, deep sea HMS I/II 80:20 scrap prices have moved up by another $3.5/mt on average since the beginning of this week.
SteelOrbis has learned that an ex-US deal was signed by an Izmir-based producer for 16,000 mt of HMS I/II 80:20 scrap at $389/mt CFR, 12,000 mt of shredded scrap at $409/mt CFR and 2,000 mt of bonus grade scrap at $409/mt CFR, for July shipment. This price is similar to the ex-US HMS I/II 80:20 scrap price recorded yesterday, June 26.
Turkish mills have continued to conclude bookings from the EU and the UK. Two ex-UK transactions were closed at $385/mt CFR by the same Marmara-based producer. HMS I/II 80:20 scrap prices from the UK have increased by $2/mt CFR. Meanwhile, an Izmir-based producer has bought an ex-Germany cargo for HMS I/II 80:20 scrap at $387.5/mt CFR, with shredded and bonus grades at $407.5/mt CFR. Lastly, an ex-Netherlands deal by an Iskenderun-based steel mill is reported to have been closed at $384/mt CFR for HMS I/II 80:20 scrap. As a result, the ex-EU reference scrap price has increased to $384-387.5/mt CFR, from $383-385/mt CFR recorded yesterday.
For ex-Baltic scrap, HMS I/II 80:20 scrap prices have settled at $388.5/mt CFR in a new deal done by an Iskenderun-based producer. This deal was not confirmed by the buyer or the seller by the time of publication, though most players believe it was in fact done. This cargo will be shipped in July.
Despite the slow rising trend observed in the import scrap segment in Turkey, a break in purchases may be seen in the coming weeks before Turkish mills start to buy scrap for August shipment. This break may also halt the increasing trend of prices, since the current levels do not allow much margin to Turkish mills considering their finished steel prices. Also, billet prices in Turkey are dropping in new domestic and import bookings. Turkish integrated producer Kardemir opened its billet sales today at $535/mt ex-works for S235JR grade and $550/mt ex-works for B420, which is considered to be a $10/mt decline from the general market prices. In Turkey, the general import reference price has declined to $510-525/mt CFR, versus $518-534/mt CFR before the holiday, with the lower end marking realistic ex-Russia and Donbass levels. Looking at the alternative markets, in the containerized segment in Bangladesh, offers for ex-EU shredded scrap have settled at $425-428/mt CFR, versus $425-430/mt CFR last week. Import scrap prices in India have showed declines with buyers showing no inclination to commit fresh bookings amid extremely bearish conditions in the local long products market and with the local currency breaching another historical low. Offers for ex-UK/EU shredded scrap in containers in Pakistan have been voiced at $425/mt CFR, against $425-430/mt CFR before the holiday. Hence, deep sea scrap prices in Turkey are not only failing to find sustainable support from the finished steel markets but also from alternative products or markets.