The continued uptrend of ex-China billet offer prices to Turkish steelmakers has helped boost activity and prices, within the Turkish import scrap market.
Earlier this week, SteelOrbis reported that ex-China billet offer prices to Turkish steelmakers were heard in the approximate range of $400-$410/mt CFR, which is approximately $50-$55/mt higher than offer prices that were heard two weeks ago, when ex-China billet offer prices were reported at $350-$355/mt CFR.
Not surprisingly, the marked increase in billet offer prices has lent itself to an uptick in US East coast export scrap prices, which exporters predicted earliers this week.
On Monday of this week, a Turkish steelmaker booked an ex-US cargo of HMS I/II 80:20 at $280/mt CFR; this price point reflects a $34/mt CFR increase from levels reported in our last US export scrap report two weeks ago. Sources said prices would rise to $300/mt CFR sooner rather than later, and today, another booking of 15,000 mt of HMS I/II 80:20 was reported at $312.50/mt CFR.
However, some SteelOrbis sources feel that any further upticks in US East coast export scrap prices will continue to hinge on Chinese billet prices.
“If Chinese billet producers come back with lower prices, Turkish mills will jump on that, which will of course drive scrap prices down,” one source said.
Other sources are a bit more bullish about the latest scrap bookings. “Recent export bulk sales are for shipment late June/early July,” another source said, “which only extends the strength of the market.”