An ex-Baltic import scrap cargo has been freshly booked to Turkey’s Iskenderun region, indicating a significant price increase. The tonnage, originating from Estonia, includes 24,000 mt of HMS I/II 80:20 scrap at $280/mt CFR and 3,000 mt of bonus grade at $290/mt CFR. The previous ex-Baltic sale to Turkey was reported on November 26 at $260/mt CFR for HMS I/II 80:20 from Poland. However, at the end of last week an ex-US cargo of the same grade was traded at $272/mt CFR. Accordingly, market sources mainly consider that the benchmark price for HMS I/II 80:20 increased by $8/mt over the past week.
The higher import scrap prices achieved in Turkey provide support for billet offers in the region and are expected to be reflected in longs prices shortly. The increase seen in Turkish hot rolled coil prices, in the meantime, may result in a further rise in scrap pricing. Currently, HRC offers have reached $490-500/mt ex-works from some Turkish producers, while the rolling cost is estimated at around $170-180/mt, though may vary depending on the product range. Turkish mills are currently in the market for January shipment scrap cargoes.