Turkish mills look to bridge scrap bid-offer gap

Posted on 14 December 2018

Source: Kallanish

The Turkish deep-sea scrap import market has fallen silent again this week, with mills’ bids still below the level merchants are demanding, despite attempts to bridge the gap. Rebar is now available at $460/tonne fob Turkey, various market participants tell Kallanish.

Last week’s Benelux-origin cargo, which sent prices down some $15/t, remains the only deep-sea scrap consignment purchased by Turkish mills since 23 November. Steelmakers were bidding at the beginning of this week at $280-285/t cfr Turkey against US and Baltic merchants’ steadfast offers of $295-300/t. Mills later raised bids to $290/t however in an attempt to break the deadlock. This has so far, however, not resulted in any deals.

“Mills’ scrap stocks are getting to a critical level, so they will have to buy soon,” says a European scrap merchant.

However, with demand for Turkish rebar so thin in both domestic and export markets, mills currently look more likely to reduce production significantly than to cave in to scrap suppliers’ demands.

“The market is so quiet, nobody wants a single tonne of material,” says an Iskenderun-based trader. “Mills in Iskenderun are so desperate, I think in the coming weeks they will stop [... producing] one by one.”

There were rumours floating around of one mill concluding a rebar deal to the UK, but the price suggested varied from $460/t fob to $470/t fob Turkey depending on the source. The booking could not be confirmed before deadline. 

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