Import scrap purchase prices in Turkey have continued to move up in new deals, with $375/mt CFR seen in a deal for an ex-Baltic cargo.
SteelOrbis has learned that a Marmara-based Turkish mill has bought an ex-Estonia cargo consisting of 22,000 mt of HMS I/II 80:20 scrap at $375/mt CFR and 3,000 mt of bonus grade scrap at $385/mt CFR, for late February shipment. SteelOrbis’ estimation for ex-Baltic benchmark HMS I/II 80:20 scrap was in the range of $360-365/mt CFR on Friday, December 5.
Also, details of a deal concluded last week have been disclosed. Accordingly, a Black Sea-based mill bought a cargo from Denmark last week consisting of 13,500 mt of shredded scrap, 15,000 mt of HMS I/II 80:20 scrap and 4,500 mt of bonus grade scrap at the average level of $365/mt CFR. Based on this deal, the price of HMS I/II 80:20 scrap was at around $362/mt CFR Turkey.
As Turkey continues to buy deep sea scrap, prime grade scrap prices are expected to continue their uptrend, though market players are refraining from making predictions for the medium term. In the short term, prime grade scrap quotations are expected to reach $380/mt CFR and above, while US-based scrap suppliers are waiting for firm bids to reach their desired levels for exports. As SteelOrbis has previously reported, there has been a shrinkage of scrap availability in all supplier countries due to winter weather conditions. On the other hand, it is also noteworthy that iron ore prices are at around $145/mt CFR China and rising, while billet quotations are in the range of $515-535/mt CFR Turkey and even higher at $510-515/mt ex-works in the domestic market.
