Import scrap prices in Turkey rise with support from finished steel quotations
The price rises seen in the local Turkish finished steel market on the first day of the current week have been reflected in import scrap quotations in Turkey, with the import price level of HMS I/II 80:20 scrap in a deal concluded on the same day moving up by $5/mt as compared to last week. Last week, import scrap quotations had fallen on week-on-week basis, with the price of HMS I/II 80:20 scrap declining to $296/mt CFR. The revival seen in both demand and prices in the local Turkish finished steel market in the current week has enabled import scrap prices to switch trend once again. Accordingly, ex-US HMS I/II 80:20 scrap quotations, which were at $303/mt CFR last week, are now at $308/mt CFR.
Meanwhile, scrap suppliers in the Black Sea region are experiencing great difficulties as freight rates have reached levels of up to $50/mt. Turkish steel mills’ price ideas for ex-Black Sea A3 grade scrap do not exceed $300/mt CFR, while suppliers in the Black Sea region are finding it difficult to meet this expectation due to their higher freight costs. As a result, it is observed that the volumes of Turkish steelmakers’ ex-Black Sea scrap purchases are falling.
Offers from suppliers in the Baltic region and the US to Turkey have been seen today, November 14. Although some Turkish mills are still seen to be targeting a purchase price level of $300/mt CFR, it is believed that under the current conditions foreign scrap suppliers will not be able to meet this price level. However, it is thought that the future trend of import scrap quotations – which are already at higher levels – will be shaped by Turkish steel producers’ demand levels, since there is no problem in terms of the volume of deep sea scrap supply for now.
*This was published on SteelOrbis website on November 14, 2017.