In three deals disclosed to the market, deep sea scrap prices in Turkey have increased slightly.
SteelOrbis has learned that a Marmara-based Turkish mill has concluded an ex-US deal for a total of 20,000 mt scrap with HMS I/II 80:20 scrap prices at $481/mt CFR. The previous ex-US deal was closed at $480/mt CFR Turkey for the same grade.
Also, an ex-Baltic transaction is reported to have been concluded by another Marmara-based steelmaker with HMS I/II 80:20 scrap transacted at $478/mt CFR, for March shipment. This booking was not confirmed by the buyer or the seller at the time of publication, but is widely believed to be done. Prior to this deal, the price estimations for the ex-Baltic benchmark grade were in the range of $477-480/mt CFR Turkey.
Meanwhile, an ex-Netherlands scrap booking has been heard in the market today, January 8 - though without confirmation yet by the parties involved by the time of publication - made by an Izmir-based producer for HMS I/II 75:25 scrap at $471.5/mt CFR and bonus grade scrap at $486.5/mt CFR. This indicates a level of $476.5/mt CFR for the European benchmark HMS I/II 80:20 scrap price, which is slightly higher than the $474/mt CFR level fixed in the previous deal.
On the US side, domestic scrap prices in the northeastern parts of the country have settled $80-120/gt higher than December levels. Market players state that there is still demand for ex-US cargoes in Mexico, at levels $10-11/mt higher than offered by Turkey for HMS grades. Also, China’s import scrap transactions from Japan are being closely monitored by market players as they all want to see the new custom procedures initiated by China. “Although the tonnages bought by China were small, they will reveal a lot,” one market source stated. Meanwhile, China’s domestic scrap quotations are still very close to the levels offered by international scrap suppliers, which makes imports less attractive to China for now. Meanwhile, the local Turkish rebar market has experienced a relatively lively week, with large amounts of rebar changing hands in Izmir and Iskenderun. “The lack of European steel mills in the market is causing a sluggish period for Turkish steelmakers in terms of exports”, one sources stated, “as buyers would like to compare Turkey’s prices with its European competitors”.
