Posted on 31 Oct 2019
After a long weekend due to Republic Day, Kallanish observes that Turkish mills’ demand for imported scrap is yet to kick off this week. While there are only a few producers inquiring for scrap, most have taken a cautious stance. As a result, there are few suppliers in the market trying to sell, especially after recent sales gave them respite.
Following the deal that was concluded at $256/tonne cfr average price last week, imported scrap suppliers have increased their quotes further in the Turkish market. At the end of last week, a Baltic supplier sold HMS I/II 80:20 at approximately $248.5/t cfr, up $4.5/t on-week.
On Tuesday a Turkish mill concluded a European scrap cargo at $248/t cfr Turkey for 22,500t of HMS I/II 80:20 and $258/t cfr for 2,500t of bonus grade.
Although Turkish mills’ imported scrap demand remains low, deep-sea suppliers are expected to increase their offer levels further following the rises in the global scrap market this week. While US and Baltic suppliers are expected to offer at $255-260/t, European suppliers are expected to offer at $250-255/t for HMS I/II 80:20, though no offers have been heard yet. On the other hand, it is questionable whether Turkish producers will accept these levels this week.
A European scrap supplier tells Kallanish: “Although we have increased our collection prices up to €190/t for HMS I/II 80:20, there is almost no seller available in the market. The industry in general is not generating enough scrap due to the slowdown in the automotive industry, and the winter season and holidays are coming. For the next 3-4 months I don't expect that there will be a lot of scrap available.”
A US scrap supplier says: “I am not expecting to see strong demand from Turkish mills this week. Nevertheless, I think Turkey will not accept higher prices soon. Deal prices may remain at current levels for a while.”
The Kallanish daily price assessment for HMS I/II 80:20 cfr Turkey which represents US and Baltic scrap remains unchanged at $250-252/t.
