The upward movement observed in Turkey’s import scrap market has continued with an ex-US deal done today, October 31. It is known that Turkey still needs cargoes for November shipment, though the sustainability of the current levels is considered disputable amongst market players.
SteelOrbis has learned that an Iskenderun-based producer has concluded the deal for 25,000 mt of HMS I/II 90:10 scrap at $367/mt CFR and 8,000 mt of shredded scrap at $385/mt CFR. According to this information, HMS I/II 80:20 scrap price shall be considered in the range of $362-365/mt CFR Turkey, indicating a $6/mt increase for ex-US scrap quotations.
Despite the need of deep sea cargoes, most Turkish mills were reluctant to accept higher levels early today. Some sellers say approaching winter will make it hard to collect scrap in the coming period, some sellers remind approaching end of year makes it easy for them to wait for better price levels (mainly EU-based sub-collectors), Turkish mills still report low demand for finished steel and remind the problems it brings within. Currently, collection prices in the EU have returned to their previous levels of €295/mt DAP, from the previous range of €275-280/mt DAP recorded late last week. “There was no flow at that range, and with the upward movement seen in Turkey €295/mt DAP is more workable. Again, some Germany-based sub-collectors already started to voice €300s/mt DAP,” a European scrap exporter commented. Meanwhile, a Turkish mill stated that the current deep sea scrap levels are once again making it hard for them to maintain their competitiveness in the export markets. An important note regarding the flat steel demand in Turkey came in today, according to a statement published in the country’s Official Gazette, Turkey has launched an antidumping investigation on hot rolled coil from China, India, Japan and Russia.