Posted on 02 Jun 2021
Silence prevails in Turkey’s scrap market, with both suppliers and Turkish mills seen focusing on price developments and expected news regarding the approval of export tax in China.
Although Chinese steel prices have recovered since last weekend, Turkish mills initially want to see the resulting impact on Chinese imports. They are therefore not rushing to conclude scrap bookings before having a clearer picture of the Chinese market.
While Turkish mills are uninterested in scrap purchases, suppliers are avoiding giving price indications. However, Kallanish observes there are at least 15 imported scrap suppliers that are ready to sell once Turkish mills resume purchases.
The latest deal was confirmed at $502/tonne cfr Turkey for HMS 1&2 80:20 from the US last weekend.
A Turkish mill tells Kallanish: “Considering the latest US booking, nobody would buy premium HMS 1&2 80:20 at above $495-500/t cfr today. There are more than sufficient offers in the market.”
A US-origin scrap supplier, however, says: “The latest US-origin booking should not be a reference for the market. There are not many suppliers that can afford those levels. The shredded premium at $10/t in that booking is too small. Shredded prices are expected to increase sharply in June trading in the US.”
Another US-origin scrap supplier says the shredded premium should be minimum $17-20/t.
A Turkish mill says Baltic suppliers are ready to accept prices at below $500/t cfr.
On the short-sea market the latest Romanian and Ukrainian deals have been concluded at $450-455/t cfr. Some suppliers, however, are still offering at $470/t cfr, which is far from being acceptable for Turkish mills.
Scrap prices in Turkey continue to remain under pressure due to imbalanced supply and demand. However, any favourable news that may come out of China may reverse the current situation.
Turkish rebar prices, meanwhile, are falling in both the domestic and export markets. A mill in the north has decreased its domestic rebar price to $665/t and closed sales after a short time. Other mills are seen offering rebar at $700-746/t ex-works, VAT excluded, depending on the region.
Offers from stockists are at TRY 7,020-7,100/t ex-works, including VAT. With the lira at 8.52 per dollar, this corresponds to $698-706/t ex-works, VAT excluded.
Scrap prices in Turkey's domestic market are also on a downtrend, meanwhile.
Source:Kallanish
