A slightly older ex-Baltic deal has been disclosed in Turkey’s import scrap market today, Tuesday, May 11.
SteelOrbis has learned that the deal in question was made by a Marmara-based Turkish mill on Friday, May 7, for HMS I/II 90:10 scrap at $498/mt CFR and bonus grade scrap at $505/mt CFR. The cargo is believed to be for shipment in June. According to this information, the price of the benchmark HMS I/II 80:20 scrap grade in the cargo is estimated to be at $495/mt CFR. The previous booking from the Baltic region was of Sweden origin, with HMS I/II 80:20 scrap transacted at $488/mt CFR Turkey.
Sentiment in Turkey’s import scrap market is still positive. Market players state that deep sea HMS I/II 80:20 scrap offers to Turkey have risen to $500/mt CFR and higher in the current week. Some sellers that had offers to Turkey last week are now out of the market, without making any sales at their previously targeted levels as they are now anticipating a further rise in prices. On the other hand, some market sources believe that Turkish mills may show some resistance to such levels around $500/mt CFR. The “supercycle” voiced by economists to define the current surge observed in the international raw materials market has attracted attention. Furthermore, in an article the Financial Times stated, “Predictions of another supercycle are not without foundation: attempts to reduce advanced economies’ fossil fuel emissions and rising US infrastructure spending will mean more demand for certain metals and other materials - copper, as well as lithium, is vital to make electric cars. The green transition has had an effect on supply, too. Few fossil fuel companies are investing as they once did in exploration and production.”
