Meanwhile, Indian import prices went down during the working
week from Monday May 15 to Friday May 19 as buyers stayed out
of the market over fears that markets could collapse during the
slowdown in the Islamic holy month of Ramadan.
Turkish steel mills have booked three deep-sea cargoes this
week, totalling 92,000 tonnes.
Two Baltic Sea cargoes were booked earlier in the week, while a
US one was sold on May 18.
A steel producer in the Marmara region booked a Baltic Sea
cargo, comprising 29,000 tonnes of HMS 1&2 (80:20) at
$272.50 per tonne and 6,000 tonnes of bonus at $282.50 per
Another steel mill in the Iskenderun region booked a second
Baltic Sea cargo, comprising 21,000 tonnes of HMS 1&2
(80:20) at $272 per tonne and 6,000 tonnes of bonus at $282 per
A steel producer in the Iskenderun region booked the US cargo,
comprising 16,000 tonnes of HMS 1&2 (80:20) and 14,000
tonnes of bonus, at an average price of $278 per tonne
Finished steel demand in the Turkish domestic market,
especially for rebar, was strong and this was helping Turkish
steel producers to continue to book deep-sea scrap.
"The domestic rebar supply is getting tighter," a Turkish
source said, "and this is encouraging mills to continue to book
However, the most recent deal sent the daily indices down by
around $2-3 per tonne, following the US anti-dumping decision
and because of the approach of Ramadan.
"I think the new anti-dumping decision
has to do with
lower scrap prices, along with slow finished steel exports.
Mills are not willing to pay a premium for deep-sea scrap at
the moment," a trading source said.
"The slowdown in exports was the result of the approach of
Ramadan," another source said.
Ramadan, with its typical slowdown in commercial activity,
starts on May 26 in Turkey and will last for around a
Turkey made a fresh deal for a US East Coast bulk cargo of
cut grades of ferrous scrap
on May 18, with the price for
HMS 1&2 (80:20) failing to break the $275-per-tonne
These prices were down by $0.77 per tonne from the preceding
cargo sale on May 5 at $274 per tonne cfr for a 40,000-tonne
cargo of HMS 1&2 (80:20).
Turkish steelmakers have been snubbing shredded scrap and have
shown a preference for cut grades in recent purchases. Shredded
scrap was also conspicuously absent from two Baltic Sea cargoes
purchased early this week at $272 and $272.50 per tonne
This was not good news for shredded scrap in the US coastal
region, which could head into oversupply. Sources believed
there was a lot more shredded scrap generated in the US
Northeast than other grades.
A number of US mills have been hungry for cut grades as well,
and have adjusted their scrap preferences in recent months.
With prime grades in tight supply, domestic US mills have shown
increased demand for higher-quality cut grades.
"Some [US Northeast] mills closed their shred buys pretty
quickly this month," a broker source said, "but they are still
looking for HMS material and P&S scrap."
Import prices for USA-origin containerised HMS-grade ferrous
scrap in Taiwan have not changed this week
, even though
there was downward pressure from competitive offers out of
As happened last week, Japanese H2-grade bulk cargoes were
heard sold this week at prices around $240 per tonne cfr,
traders and buyer sources said.
"Japanese scrap is becoming more competitive," one trader
Most scrap deals closed this week in Taiwan were for Japanese
cargoes, including higher-grade material such as
Small deals for HMS 1&2 (80:20) containers from the USA
have also been made this week, at prices as high as $238-240
per tonne cfr, sources reported.
Smaller cargoes were heard traded at less than $235 per tonne
cfr, but such prices were widely considered not to be
representative of the market at the moment.
Meanwhile, the Taiwanese market has been "flooded" by
competitive offers from China, following news that a few local
buyers booked trial Chinese cargoes in recent weeks.
"There’s a lot of offers from China now, but most
buyers in Taiwan are waiting for the trial cargoes to arrive
first," a second trader in Taiwan said.
Fears that the Ramadan religious holiday in Islamic nations
will trigger a fall in global scrap prices led to many Indian
buyers being unwilling to risk purchasing material at this
week’s prices, Metal Bulletin learned on May
Sellers reduced their offer prices for imported HMS 1&2
(80:20) and shredded scrap in an attempt to secure some
bookings, but little market activity was heard.
"There’s not much buying [as] buyers expect a
[price] correction of $15-20 per tonne," one Indian seller
said. "They might start chasing orders [after the price drop]
but, before then, it will be difficult."
"Lots of things are happening around the globe –
people [are] not sure which way it will go. [When] people
don’t know, there is a tendency to slow down," the
second seller said.
Metal Bulletin’s index for containerised shredded
scrap imports in India closed at $295.12 per tonne cfr Nhava
Sheva on May 19, down by $6.39 per tonne compared with $301.51
per tonne cfr the previous week.
Although some offers were heard as low as $290 per tonne cfr
Nhava Sheva, there were transactions closed at levels higher
than this, suggesting that market participants had differing
views of the true market level.
One deal for UK-origin shredded material was heard at $292-295
per tonne cfr Nhava Sheva, while another deal for
unknown-origin material was closed at $299 per tonne cfr.
Turkish steel producers were also active in the short-sea
markets this week.
Russia-origin A3-grade scrap was heard selling to Turkey at
$259-260 per tonne cfr this week.
Turkish domestic scrap prices continued to rise at the beginning of the
, in line with the strengthening imported scrap values
in the previous week and firm domestic demand for finished
"Domestic rebar sales are still very strong and the prices are
rising every day. Imported scrap prices are also rising, which
[is leading to] an increase in domestic prices," a source at an
Izmir mill said on May 15.