Import deep sea scrap prices in Turkey have rebounded in a new ex-UK sale and, moreover, a further increase may be seen. Sources believe that the higher price level for scrap has been accepted due to recent rebar export deals from Turkey at relatively firmer prices. However, many describe the current situation in scrap as only cautiously optimistic since there is resistance from buyers due to the still gloomy outlook in the finished steel sector despite the livelier sales. “We need to see more [scrap] deals and more sustainable steel sales in order for this trend to be supported. In any case, it is a balance between Turkey’s currently reduced output and the expected slower scrap collection,” a trader said.
A fresh scrap import cargo from the UK has been reported as sold to an Iskenderun region-based mill in Turkey with HMS I/II 80:20 scrap priced at $344/mt CFR. The full details of the sale have not been disclosed by the time of publication, but some sources report it involves a 28,000 mt cargo. The lot is to be shipped in December. As a result, the European benchmark scrap price has increased by $9-14/mt from the previously estimated $330-335/mt CFR. In this situation, suppliers from the Baltic region and the US are expected to settle at around $345-350/mt CFR, while some of them are reportedly testing the upper end of the range already.
Currently, market sources are trying to evaluate the possible trend in the US scrap market in December and some expect the trade to be hit by seasonal issues, lower collection and the expectations of lower demand from the mills. In addition, the anticipated country-wide railroad strikes in December would have an impact on the scrap segment. “If that’s the case, the logistics will be hit and it might mean transportation costs will rise and supply might be jeopardized - to the mills and to the ports,” a scrap market player told SteelOrbis.
In the short sea scrap segment, a total of 8,000 mt of HMS I/II 80:20 scrap has been sold this week at $325/mt CFR Izmir from Romania. Moreover, Bulgaria is in the market, trying to achieve the same level for its scrap in negotiations. Generally, sources report there is a certain resistance among the mills in the Mediterranean region and some of them even voice their price ideas at $290/mt CFR for ex-Israel scrap, while normally it should be $10-15/mt lower than ex-Romania material.
