Ex-Baltic scrap prices for Turkey have declined very slightly in a relatively new deal, as observed in other scrap segments last week. Despite the decline, ex-Baltic and ex-US scrap quotations have been very close to each other in the recent deals.
An Iskenderun-based producer bought the ex-Baltic cargo, with HMS I/II 80:20 and bonus grade scrap standing at $374/mt CFR and $394/mt CFR, respectively. The previous ex-Baltic deal was done at $375/mt CFR. SteelOrbis’ reference price for this grade was at $373/mt CFR, revised after last week’s drop in ex-Europe and ex-US booking prices.
After the announcement of the new export tax in Russia effective up to the end of 2024, the Black Sea billet market has been evaluating the likely impacts of the tax. As SteelOrbis reported, the reference price for ex-Black Sea billet has been hiked by $10-20/mt to $480-490/mt FOB, mainly based on expectations and current negotiations. However, a source at a major Turkish mill said this tax will have a short-lived impact on billet prices. “For example, we were already staying away from billet. We will not be hit by this new tax. Most bigger players will not. But I can see several rolling mills feeling the negative impact of higher Russian billet prices,” the source said, adding, “I believe the main impact will be the tax on coal exports. In the end, we will all need that coal.” Spot rebar prices in Turkey have settled at TRY 18,500-18,800/mt or $567-576/mt ex-warehouse today, September 25. Turkish mills’ official prices for domestic rebar are at $580-590/mt ex-works, while $570-580/mt ex-works is considered workable in actual deals.
