Weaker scrap prices in Turkish market witnessed again on EU sales

London (Platts)–24May2013/255 pm EDT/1855 GMT

Turkish scrap import figures fell again this week with Benelux cargoes settled with steelmakers and cargoes from the US also understood to have been sold at weaker prices to a major electric arc furnace in North Turkey, market participants said Friday.
The composite price circulating the market for the US-origin cargoes was $355/mt CFR Karabiga for a mixture of HMS I/II (80/20 blend) and higher-yielding grades to a major EAF; confirmation of these cargoes could not be asserted.

Meanwhile, HMS I/II (75/25 blend) was concluded at $331-332/mt CFR North Turkey by a Benelux-based recycler, and a second West European supplier sold a cargo of HMS I/II (70/30 blend) at $325/mt CFR Aliaga, according to market sources.

Platts daily price slipped another $2.50/mt on Friday to $350/mt CFR Turkish ports as a result of the above business.

Scrap is still relatively discounted compared to reinforcing bar, Turkey’s main steel export product, and semi-finished billet from the Black Sea. Billet producers in Ukraine are holding their line at $500/mt FOB for June output and July shipments: one even managed to sell at this price to the Levant this week. However, Turkish re-rollers are all looking for $510/mt CFR Marmara from the Black Sea, or around $495/mt FOB.
For EAFs to start buying billet to supplement stocks of scrap, the billet price would need to fall lower from the Black Sea. This is also applicable to pig iron from the CIS. CIS-origin scrap is more competitive though: one Russia-origin cargo to be shipped from Rostov was heard traded at $330/mt CIF Nemrut for A3 demolition material, for instance.

Source: Platts.com