Posted on 25 Mar 2020
After concluding some deep-sea and short-sea scrap purchases last week, Turkish mills have once again halted their scrap purchases this week.
Last week, HMS 1&2 80:20 scrap prices decreased sharply initially to $247/tonne cfr and later to $226/t cfr Turkey in bookings from Canada and the UK respectively.
In the short-sea market, A3 grade decreased to $217/t cfr in the latest booking concluded at the end of last week. Today, however, although short-sea suppliers are ready to sell at lower rates, Turkish mills are not interested in buying.
A Baltic supplier is heard to have offered a cargo that consists of HMS 80:20 and bonus grade at $225/t cfr.
A short-sea supplier tells Kallanish: “We are in the market and ready to accept $205-210/t cfr, whatever mills bid. No one is interested so far.”
As a result of weak local and export finished steel demand, decreasing finished steel prices and measures against the coronavirus, most Turkish steelmakers have decreased capacity utilisation rates. Some mills, specifically those mostly serving the local market, are heard to have considered suspending production.
A Turkish mill tells Kallanish: “We have decreased capacity utilisation. This is not only a result of shrinking business but also our company’s measures against the coronavirus spread. We want to bring as few workers as possible together.”
A deep-sea scrap supplier says: “We are busy with problem solving. We are receiving delay requirements from mills for our previous sales. Some are asking for discounts on already agreed prices. Ports do not provide us guarantees for our shipments, LCs, customer requests... There are too many problems.”
Some Turkish mills are heard to have stopped sourcing scrap from the domestic market, despite lower prices at $215/t. Although mills have given no official information regarding a production halt, their attitude towards scrap purchases points to one.
On the other hand, there are scrap suppliers in the Turkish market that are trying to liquidate stock. They are mostly Baltic-origin suppliers. Consequently, scrap prices will most likely see further sharp decreases in the coming days.
Source:Kallanish
