A relatively fresh import scrap transaction has been recently disclosed in the Turkish market from a European supplier. Although buyers were expecting to put pressure on scrap prices amid energy-related cost increases, the price in the deal is still considered by many as being on the aggressive side.
A Turkish steel producer based in the Marmara region has lately booked an ex-Netherlands scrap cargo, consisting of 34,000 mt of HMS 1&2 (80:20) and 6,000 mt of bonus grade and HMS 1 grade at the average price of $374/mt CFR. According to estimations, the price level for HMS 1&2 (80:20) in this deal is around $372/mt CFR. Previously, the indicative price level for ex-EU steel scrap in Turkey was at $375-385/mt CFR. “I’m not sure $370s would be achievable from many other European scrap sellers at this point. Some of them may prefer selling to Asia at higher prices in smaller lots,” a trader told SteelOrbis.
In the meantime, some movement is expected in the billet market in Turkey, where the number and the price level of import bids have increased. According to sellers, some buyers may find it possible to pay $580-590/mt CFR for Russian origin billet. In the meantime, no firm offers are heard from suppliers as they prefer to evaluate the market. Indicatively, Russia is foreseen to target $600/mt CFR and above. In the meantime, local billet price levels are estimated at $630-640/mt ex-works.