Posted on 30 Jun 2022
Turkish steel producers continue to decrease their domestic scrap buying prices since last week, Kallanish notes. Imported scrap prices, however, are showing signs of recovery on fresh bookings.
Three imported scrap bookings were heard on Wednesday. A mill in southern Turkey is confirmed to have bought US-origin HMS 1&2 80:20 at $335/tonne cfr Turkey. This is up from $330/t cfr on Monday. A western mill, on the other hand, bought EU-origin HMS 1&2 80:20 at $329/t cfr on Tuesday. A Marmara mill bought a Baltic cargo comprising HMS 1&2 80:20 at $340/t and bonus grade at $355/t cfr on Tuesday.
Although Turkish mills' demand has picked up following the improvement in sentiment this week, imported scrap suppliers have backed off from the market. With the increase seen in rebar prices, scrap suppliers are also now targeting to sell at higher prices.
A scrap agent says: “You cannot find even a short-sea offer at $330/t cfr today. Suppliers, who had to endure huge losses until now, are now withdrawing offers in order to sell at higher prices."
Another agent says that new bookings will appear at around $350/t cfr levels.
Some exporters in the Benelux also increased their dock prices on Wednesday. Prices, which were standing mostly at €220-230/t ($232-243) delivered on Monday, have increased to €245-255/t ($257-267).
There has been a slight improvement in rebar sales, meanwhile. Following the Hong Kong sale at the beginning of the week, a western Turkish mill is heard to have sold rebar to Singapore at $650/t cfr theoretical weight. This is however yet to be confirmed. A Marmara mill has sold 40,000t of rebar to the US. Although the exact price is yet to be confirmed, it is said to be above $640/t fob Turkey actual weight. There are also ongoing sales to Africa and the EU.
In the domestic market, demand was lively, with stockist buying activity strong on Wednesday. Although end-users were yet to return to the market, stockists believed the market is rebounding and finalised their pending purchases. Mills opened sales at $625/t levels in the morning, but they increased their prices up to 640/t ex-works later in the day.
The interruption in supply due to alleged fraudulent billing has also accelerated domestic demand as buyers will not be able to source material from those stockists and producers that are under investigation. Most market participants, however, doubt demand will sustain due to the upcoming Eid holiday.
Turkish shipbreaking scrap prices continued to fall, reaching $335-345/t delivered from $345-355/t last week. The lira was at 16.62/dollar at business close on Wednesday.
Turkish mills' new cutting (DKP) scrap buying prices | |||
Producer | 22 June (TRY/tonne) | 29 June (TRY/t) | Change (TRY/t) |
Erdemir | 6,830 | 6,330 | -500 |
İsdemir | 6,600 | 6,300 | -300 |
Kardemir | 7,450 | 6,350 | -1,100 |
Çolakoğlu | 6,830 | 6,330 | -500 |
Kroman | 6,300 | 5,700 | -600 |
Asil Çelik | 6,900 | 6,400 | -500 |
Diler | 6,250 | 5,550 | -700 |
Mescier | 6,200 | 5,500 | -700 |
Source: company information
Source:Kallanish
