DAILY STEEL SCRAP: Mills seek support from finished steel sales before committing to scrap bookings

Turkish steel producers remained quiet in the deep-sea scrap market and instead continued to focus on finished steel, sources told Fastmarkets on Tuesday June 1.

The most recent deep-sea trade was done at the end of last week, when a steel mill in the Marmara region booked a US cargo, comprising HMS 1&2 (80:20) at $503 per tonne and shredded scrap at $513 per tonne cfr.

The US cargo resulted a further decrease in daily scrap prices, as the deal prior to that was done at $515 per tonne cfr for HMS 1&2 (95:5), which equates to about $508 per tonne on HMS 1&2 (80:20) basis.

Market participants said the mills were now seeking even lower prices because the finished steel market had slowed down.

“The scrap import market is quiet this week [and] Turkish steelmakers do not want to buy [more] scrap before selling finished steel to the export market,” a Turkish mill source told Fastmarkets.

“I think the mills will want to pay $490 per tonne cfr [or less] for scrap,” he added.

A trading source said that scrap merchants were no longer in the market either.

“I think the next price level will be somewhere between $495 and $500 per tonne cfr,” the source said.

A second Turkish mill source said that direction of the finished steel market was not clear.

“Domestic rebar prices went down to $700 per tonne ex-works [but] domestic billet prices were recently at that level,” she said.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Turkey was 7,150-7,200 lira ($840-846) per tonne on Thursday May 27, which equates to $712-717 per tonne excluding 18% VAT.

As a result of the fresh bids and assessments collected, the daily scrap indices went down further on Tuesday June 1.

Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was calculated at $497.03 per tonne on Tuesday, down by $3.63 per tonne compared with Friday’s index.

And the corresponding daily index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey, was $502.57 per tonne on June 1, down by $2.67 per tonne, putting the premium for US material over European scrap at $5.54 per tonne on June 1, compared with $4.58 per tonne on May 28.

What to read next
Industry association European Aluminium has put together an independent taskforce to investigate certain aluminium imports to the region from Turkey, according to documents seen by Fastmarkets
Fastmarkets proposes to discontinue foundry grade price assessments included in its Philadelphia consumer buying price series due to a lack of liquidity.
Fastmarkets proposes to launch a weekly steel hot-rolled coil index, fob mill South US to capture regional distinctions in the domestic hot-rolled coil market over time.
Fastmarkets is inviting feedback from the industry on the pricing methodology for low-carbon ferro-chrome in Europe, following preliminary discussions with the market.
Luxembourg-based recycler Befesa’s facility in Mooresboro, North Carolina, is the first in the world to manufacture special high-grade (SHG) zinc solely from recycled zinc
Lower aluminium premiums in Europe risk deterring imports amid falling freight rates, with some market participants now looking at the availability of material for 2023 in light of the various smelter cuts on the continent
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed