Turkey’s import scrap market has rebounded in the latest deals, though the number of offers in the market from suppliers have increased over the past week.
SteelOrbis has learned that an Iskenderun-based producer has concluded an ex-US deal for HMS I/II 80:20 scrap at $370/mt CFR, with shredded and bonus grade scrap at $390/mt CFR. Also, a Marmara-based producer has bought an ex-US cargo for HMS I/II 80:20 scrap at $370/mt CFR, with shredded and bonus grade scrap at $390/mt CFR. This level is similar to the previous price recorded in the ex-US booking yesterday, September 5.
Also, an ex-Baltic booking was done by a Marmara-based producer for HMS I/II 80:20 scrap at $368/mt CFR and bonus grade scrap at $388/mt CFR. Market sources report that this deal was done two days ago. Hence, SteelOrbis’ ex-Baltic HMS I/II 80:20 scrap price has been revised to $368-371/mt CFR.
Market sources report that the upward trend of Turkey’s import scrap market may be negatively impacted by the negative movement observed in China. While some market players think that Turkish mills may have started to come under pressure to export due to the billet imports they have already bought under the scope of Turkey’s inward processing regime, others think they still have time. “I believe some mills have not bought so much import billet and they may seek billet cargoes now if needed. Others, I believe, may stop for now and support their production with scrap instead,” a European scrap seller commented. Another source said that prices will stabilize from now on, “I think $370/mt CFR will be the ceiling for this round of bookings. Several US suppliers are in the market with offers. I hear at least three Europeans are seeking buyers.” Meanwhile, a German sub-collector reported that bids from an Amsterdam-based export yard have increased by €10/mt DAP to €295/mt DAP. This supports the comments of European scrap exporters, indicating that collection prices in the EU are moving up once again. For now, SteelOrbis believes Turkish buyers and international scrap sellers are more or less in agreement in terms of prices, while the lack of finished steel demand in Turkey does not provide support for a large jump in scrap prices.