As the cautious positive sentiment in Turkey’s import scrap market continues, an ex-Baltic deal has been disclosed to the market today, April 27.
SteelOrbis has learned that the ex-Estonia booking was done by a Marmara-based Turkish mill last weekend for 25,000 mt of HMS I/II 80:20 scrap at $427.5/mt CFR. The previous deal from the Baltic region was done from St. Petersburg at $426/mt CFR Turkey towards the end of last week.
It is observed that Baltic suppliers are targeting prices of $430/mt CFR and above for HMS I/II 80:20 scrap in the coming period, while one US-based scrap supplier had reportedly offered the same grade to Turkey at $435/mt CFR. However, SteelOrbis considers this ex-US HMS I/II 80:20 scrap offer to be only indicative as most market players state that this offer is currently not in the market, adding that US suppliers are remaining silent. From Europe, there are offers at around $425/mt CFR for the benchmark grade. Additionally, short sea HMS I/II 80:20 scrap prices in offers from Romania and the Adriatic region are in the range of $400-405/mt CFR. Collection prices have also moved up in most regions, market sources state.
Market players state that demand for import scrap exists in Turkey. Sentiment in the market is good, while some players state that a balance in demand and supply has been reached, leading to a healthy market situation. Some market sources said they expect a slow increase in prices with each new deal, while some stated that a sharp increase is not profitable for either side as experienced during the last round of bookings because it ends with an equally deep fall in quotations. Having said that, there is a significant shortage of shredded scrap in the international market, and the gap between HMS I/II 80:20 scrap and shredded has once again widened above the $5/mt traditional price difference. Turkey is very close to finishing if it has not already finished its deep sea scrap purchases for May shipments. SteelOrbis understands that there are approximately ten cargoes already bought for June shipments. Market sources believe that Turkish mills will conclude several bookings in the next two weeks ahead of the end-of-Ramadan holiday. Also, the positive price sentiment in China still attracts attention as well as the sharp increase in iron ore prices in the current week, to $193/mt CFR for iron ore fines with 62 percent Fe content.
