Deep sea scrap prices in Turkey have moved down sharply this week amid the negative sentiment in the market and the high number of available cargoes offered to Turkey.
SteelOrbis has learned that an ex-Sweden deal has been closed by a Marmara-based producer for HMS I/II 80:20 scrap at $375/mt CFR, with shredded and bonus grade scrap at $395/mt CFR. This level is $13/mt lower than the previous price.
Meanwhile, there is a rumor that an ex-Canada booking has been done at $377/mt CFR Turkey for HMS I/II 80:20 scrap and that an ex-US scrap cargo has been bought at $380/mt CFR. These deals also indicate that ex-US scrap prices have fallen by at least $8/mt over the current week. While this information was not confirmed by the sellers or buyers by the time of publication, some market sources believe that the next ex-US cargoes will be closed at around $375/mt CFR.
Under the current conditions, ex-EU HMS I/II 80:20 scrap prices will also decline, to approximately $370/mt CFR, maintaining a $5/mt gap compared to ex-US cargoes. Accordingly, the reference prices for SteelOrbis’ ex-EU HMS I/II 80:20 scrap have been cut by $4/mt.
Looking at the alternative markets, import scrap prices in Pakistan have mostly been moving sideways, while some occasional deals have even shown a slight downward bias, according to sources. Prices for imported scrap in India have softened this week as demand has been slow after the holidays last week, while the uptrend in the local rebar and billet market has stalled for a while.
At a panel discussion held in the southern Turkish city of Iskenderun yesterday, October 15, attendees pointed to the lack of profits in 2024 for steel producers. Kaan Özülü from Ekinciler Holding pointed out that rebar prices had increased and there has been a significant recovery in demand in the second half of 2024. “In the earthquake-hit region alone, TOKI has started projects for 300,000 houses and is planning for 300,000 more,” he added. Meanwhile, Atakaş Çelik CEO Cem Üstün mentioned that the tight monetary policies in Turkey may result in lower demand during the remainder of this year and that the only way to counter this is through exports. Having said that, domestic rebar prices in Turkey are also showing some slight declines, supporting the idea that the recent rebar demand recovery observed in the local market may be easing ahead of the approaching winter.
Meanwhile, a letter sent to the heads of state and government of the member states of the European Union by the European Steel Association (EUROFER) has called upon the European Council during its informal meeting of trade ministers on October 17-18 to consider some issues the European steel industry is facing. According to the letter, the European steel industry, which is an indispensable part of many key EU manufacturing value chains, is in its worst crisis since the financial and economic crisis in 2009. This is driven by the impact of global steel overcapacity, which was 551 million mt in 2023 and continues its destructive effect, and unfair trade, which exacerbates the impact of low steel demand and high energy prices in the EU.