Two deep sea scrap deals disclosed to the Turkish market on late Friday, October 16, have supported the positive sentiment.
An Iskenderun-based mill has concluded a deal from US and the cargo consist of 15,000-17,000 mt of HMS I/II 95:5 scrap and 8,000-10,000 mt of shredded scrap at the average price level of $294/mt CFR Turkey, for late November shipment. According to this information the benchmark HMS I/II 80:20 scrap price is at around $290/mt CFR, higher than the $286/mt CFR recorded in the previous one.
Also an Izmir-based steelmaker has bought a 35,000 mt of full shredded scrap cargo from the UK at $289.5/mt CFR, which indicates a $284.5/mt CFR Turkey price for HMS I/II 80:20 scrap. The previous deal was closed at $280/mt CFR Turkey for HMS I/II 80:20 grade.
As a result, while ex-US and and ex-EU prime grade scrap price has increased. Market sources state that prime grade scrap prices are getting stronger in Turkey, expecting higher quotations in the coming round next week. The rebar export sales of Turkey are exerting support for the scrap market. International billet prices are also moving up. While ex-CIS billet prices are rising against the demand received from Africa and Latin America, import billet quotation in Southeast Asia is also uptrending amid the resumption of imports in China which is mostly focused on ex-Southeast Asia billet as others are considered to be high-priced by Chinese buyers.