Amid the ongoing tightness on the supply side, Turkey’s prices for ex-Baltic HMS I/II 80:20 scrap have moved up in a new deal.
SteelOrbis has learned that an Iskenderun-based producer has concluded the transaction for 20,000 mt of HMS I/II 80:20 scrap at $366/mt CFR and for 10,000 mt of bonus grade scrap at $386/mt CFR. The cargo will be shipped in December.
The reason for the price increase has not changed. Turkish mills are performing with low inventory levels of raw materials as demand for steel is sluggish in the export markets and they are monitoring the local market very closely. As a result, the lower scrap allocation is causing them to pay higher price levels when they need new cargoes. While several sources consider prices above $365/mt CFR for deep sea HMS I/II 80:20 risky for Turkish producers, and it is also known that the mills are still searching for December shipments. “Even if we can manage to complete purchases for December shipments, we will have a similar process for January shipments,” one seller commented. The upcoming holiday season carries the risk of continuing tightness on the scrap supply side. As reported previously by SteelOrbis, European scrap suppliers are voicing their intention to exit the market for the holiday earlier than anticipated. One seller commented that logistics problems are still observed, that scrap flow is very low, and so there is no need to keep its employees at its offices in the period before the holidays.
At the 17th annual New Horizons in Steel Markets conference held today, November 30, in Istanbul, Veysel Yayan mentioned that the decline observed in Turkey’s long steel consumption is the result of the slowdown in the construction sector over the past six years, adding, “This is expected to change in the coming year, as the government is planning incentives.” Meanwhile, Ugur Dalbeler said that his expectations for the first quarter of 2023 are similar to the situation today due to successive holidays including Christmas from December 20 to January 5, then the Chinese New Year, which will be followed by Ramadan.
