DAILY STEEL SCRAP: Mills book further September cargoes; prices steady

A steel mill in the Izmir region booked a United States cargo comprising 15,000 tonnes of heavy melting scrap 1&2 (80:20) at $464 per tonne, and 14,000 tonnes of shredded and 2,000 tonnes of plate and structural (P&S) at $479 per tonne cfr.

This compares with two US cargoes sold at $463 and $464 per tonne cfr on an HMS 1&2 (80:20) basis a day earlier.

As a result, Fastmarkets’ daily scrap indices were broadly stable on Wednesday.

Fastmarkets’ index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was calculated at $455.81 per tonne, down by just 4 cents per tonne day on day, while the index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey was calculated at $463.90 per tonne, also down by 4 cents.
This left the premium for US material over European scrap at $8.09 per tonne.

Another deal from Tuesday August 3 was also heard on Wednesday.

A steel mill in Northern Turkey booked a Baltic Sea cargo comprising 22,000 tonnes of HMS 1&2 (80:20), and 3,000 tonnes of a mixture of bonus and HMS 1 at an average price of $463 per tonne cfr.

Despite the fresh transactions, market participants remain bearish due to limited finished steel sales.

“The prices have settled at $460 levels for the moment. But I expect another downward correction soon because the mills are struggling to sell finished steel products in both the domestic and export markets,” a Turkish mill source said.

“Turkish steelmakers are currently offering rebar for export at $710-715-per-tonne-fob levels on actual weight basis. But looking at the Asian market, the workable price for the material seems to be only at $640-645 per tonne fob. The question is when the mills will accept these levels,” he added.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), export, fob main port Turkey was $715-730 per tonne on July 29, down from $730-750 per tonne the previous week.

“Demand for rebar in the domestic market is very weak too. We are hearing mills reducing their offers every other day,” another mill source said.