A booking of Russian scrap cargo yesterday has pushed the Turkish deep-sea scrap import price down $1/tonne more, with two short-sea scrap bookings emphasising the descending trend further.
A Russian supplier sold a 30,000-tonne cargo to an Izmir mill with 20,000t of HMS 1&2 80:20 and 10,000t of bonus grade at $282/tonne and $292/t cfr, respectively. A short-sea Rostov A3 cargo was sold at $278/t cfr and an Adriatic one containing HMS 1&2 80:20 at $274/t cfr Marmara, to a northern Turkey mill, Kallanish learns.
The short-sea cargo's price decline is in line with the deep-sea price dynamic, and much below sellers' latest offers averaging around $290/t cfr. Although the EU and US sellers have not yet quite joined the party, one southern European mill source tells Kallanish it is requesting lower scrap prices from its suppliers. It currently pays at around €255/t ($286/t) delivered to these. Other mills are likely to be doing the same, he adds.
Another source says dockside prices are sliding in response to lower demand and in line with the descending trend in steel price. "Scrap suppliers are aware of mills mulling production cuts as their margins shrink, so it is logical for them to lower prices in order to continue supplying," a European market observer says.
The product market has responded with lower bids for Turkish billet, at around $415/t fob, but these have been rejected thus far.