With the recovery of demand, Turkey’s import scrap market has regained the price levels recorded in early October, with the general price range for HMS I/II 80:20 scrap settling at $361-370/mt CFR Turkey. The price increase was considered to be rapid by market players, who think that there is some small room for a further rise, though most believe any further increase will be slight.
SteelOrbis has learned that a Marmara-based Turkish producer has concluded an ex-US deal for 16,000 mt of HMS I/II 80:20 scrap at $369/mt CFR, 12,000 mt of shredded scrap at $389/mt CFR, and 2,000 mt of bonus grade scrap at $389/mt CFR. Another ex-US booking was also done by the same producer, with HMS I/II 80:20 scrap prices standing at $370/mt CFR. Hence, ex-US benchmark prices have increased by $6/mt over the past few days.
Meanwhile, an ex-Netherlands transaction was done by the same producer for HMS I/II 80:20 scrap at $361/mt CFR and bonus grade scrap at $389/mt CFR. The price gap between HMS I/II 80:20 and bonus in this booking has attracted attention. Also, SteelOrbis has learned that this deal was done before the ex-US bookings abovementioned. As a result, ex-EU scrap reference prices have increased by $1/mt.
Meanwhile, two ex-Romania HMS I/II 80:20 scrap deals have been done at $348/mt CFR Marmara. Also, an ex-Bulgaria deal was closed at $345/mt CFR Marmara. Short sea scrap prices are generally in the range of $345-350/mt CFR. Short sea scrap prices have increased sharply as Turkish mills are trying to secure tonnages at the relatively lower prices coming out of the Black Sea and the Adriatic Sea regions. Market players report demand for short sea scrap has recovered sharply. Additionally, the ex-Italy HMS I/II 80:20 scrap price is at $352/mt CFR, SteelOrbis heard.
Currently, a Baltic region-based scrap supplier’s offer to Turkey stands at around $375/mt CFR, while a European scrap seller is asking for $368/mt CFR, both for HMS I/II 80:20 scrap. Most Turkish mills are unwilling to pay such levels for now. A European scrap supplier today stated, “We have already reached $370s/mt CFR Turkey, now we need finished steel sales at higher price levels or else Turkish producers will not be ready to accept another rise in scrap prices.” A source at a producer seconded this, saying, “There should be silence after this round, a long one I presume, to see how the finished steel segment will perform.” A seller of scrap from the Baltic region and Europe in general said prices are moving up towards $375-380/mt CFR, while he admitted that the increase is sharper than initial expectations. A Turkish buyer said $375/mt CFR is not workable right now, citing the lower profit margins of mills. He added, “We [as Turkish producers] accepted higher levels because we decided to keep our production rates somewhat stable, but this does not mean there is a recovery in finished steel demand. We just did not want to miss the delivery term.” Also, a German-based scrap sub-collector said the bids from export yards are at around €295/mt DAP, adding, “If I was willing to sell today, I would ask €300-305/mt DAP instead.” On the other hand, another seller of ex-US and ex-EU scrap said that they are expecting demand to continue in the coming days, commenting, “Turkish mills realized that scrap flow has been disrupted and prices are firm. Hence, I expect more of them will return to the market to secure tonnages.”