While a relatively older ex-EU scrap deal has been disclosed to the market today, February 19, SteelOrbis understands that deep sea scrap quotations in Turkey are set to move up in the coming week.
A Marmara-based Turkish mill concluded an ex-Germany booking on Monday, February 15, for HMS I/II 75:25 scrap at $410/mt CFR and bonus grade scrap at $425/mt CFR. According to this information, the ex-EU benchmark HMS I/II 80:20 scrap price is at $415/mt CFR Turkey. Before this deal, SteelOrbis’ estimation for European HMS I/II 80:20 scrap was in the range of $405-410/mt CFR.
Over the past few days, Turkish mills have started price inquiries and some market players state that the interest in deep sea scrap is lively nowadays. This revival in interest has been welcomed by the sellers, who also add that Turkey is not the only buyer in the market, but is in the pool with others such as Latin America, Saudi Arabia and the Indian subcontinent. While some market players think that deep sea prime grade scrap prices are set to increase to $430/mt CFR and above in the coming week, some have even voiced the possibility of higher levels such as $435-440/mt CFR Turkey. Higher levels are supported by rising HRC prices and the lack of HRC supply, as well as by the relatively livelier activity observed on the rebar side. Large tonnages have changed hands in the local Turkish rebar market this week, according to market sources, while some state that good price inquiry activity has been received from export markets. Some Turkish mills are hopeful for sales to Hong Kong and Singapore, but the sentiment in the Chinese steel market will create a big difference in terms of Turkey’s finished steel sales to the region. China has returned from its long holiday since yesterday, February 19, with iron ore prices indicating a sharp rise, while the sentiment in the Chinese steel market is definitely positive.