Turkey ferrous: Price down, EU docks bids fall

The Turkish scrap import price decreased today on a lower indicated bid-offer spread as steelmaker observed the second day of a national holiday that will last through to Friday 23 July.

The Argus daily HMS 1/2 80:20 cfr Turkey steel scrap assessment decreased $3/t to $480/t cfr today as some sellers showed willingness to accept prices below $485/t cfr and continental European exporters moved to drop their dock prices.

A Netherlands exporter dropped its bids for HMS 1/2 80:20 to €347.50/t delivered to dock and a Belgian exporter dropped its bids for HMS 1/2 75:25 to €345/t delivered to dock.

Several northwest European exporters are not buying scrap this week amid the weakness of Turkish scrap import prices after US exporters' strong availability forced the market down two weeks ago.

Most northwest European exporters still expect Turkish scrap import prices to stabilise when buyers' demand strengthens at the end of July, when both August and September shipment are likely to be booked.

Several European exporters made export sales at higher prices during 1-15 July and are looking to profit from weaker Turkish scrap import prices now by pushing down dockside buying prices as much as possible.

Based on a fall of $16/t in Argus' cfr Turkey steel scrap assessment since 6 July from $496/t cfr, a drop of €12.50/t in Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) dockside purchasing prices from an average €360/t on 6 July is in line with wider seaborne price movement. It is not clear at this stage at what price levels sub-suppliers will sell large tonnages in northwest Europe.

US dockside purchasing prices for #1 HMS in Boston are expected to fall to $370-375/gt delivered to dock by the end of today, down around $10/gt from last week. Boston is at the lowest end of the price range, with New York and Philadelphia moving down today around $10-15/gt on the week but to a slightly higher price range. US exporters look to be able to profit significantly from this movement as it is likely that most have not yet collected all scrap to fill cargoes set for end of July shipment and latest 20 August shipment sold to Turkey in a $485-499/t cfr Turkey range for HMS 1/2 80:20

In the short-sea Turkish import market, Argus' daily A3 cif Marmara steel scrap assessment decreased $2.50/t to $450/t on lower offer indications.