Having previously exceeded the psychological threshold of $300/mt CFR only in March during the current year, HMS I/II 80:20 import scrap prices for Turkey, which since the beginning of July scrap suppliers have expected to edge above the level in question, finally moved higher than this threshold price level in an ex-US deal concluded in Turkey last week.
Following the deal in question - which supported the rises seen in Turkish rebar prices and caused domestic rebar demand to revive slightly - scrap suppliers’ new price offers for HMS I/II 80:20 to Turkey are heard to be above $310-315/mt CFR.
Although price inquiries from Turkish steel mills for import scrap continue to be heard, deep sea scrap suppliers are observed to be focusing on scrap collection activities since domestic scrap prices in the US are expected to rise in August, and so currently no new ex-US scrap offer has been heard in Turkey. On the other hand, short sea scrap suppliers, who most recently had concluded an ex-Romania deal to Turkey for A3 grade scrap at $297/mt CFR, have also raised their offers to Turkey above $300/mt CFR, following the example of deep sea suppliers. As a result, Turkish producers are unlikely to be able to obtain prices at last week’s levels in deep sea and short sea scrap deals.