Turkey’s import scrap market has continued to move up in each new deal, while sellers are now targeting even higher levels. Market sources inform SteelOrbis that offer prices shared with Turkish mills have moved up this week, though negotiations are proving to be tough.
An ex-US scrap booking by a Marmara-based Turkish steel producer was concluded on Friday, January 9, for HMS I/II 80:20 scrap at $373/mt CFR, with an increase in ex-US scrap prices by $1.5/mt. New offers from the US are reported to be closer to $380/mt CFR, though SteelOrbis hears that Turkish mills are reluctant to accept levels higher than $375/mt CFR for this grade.
The collection prices at EU-based export yards have also increased, rising to €270-280/mt DAP over the past week, providing a firm bottom for prices. Meanwhile the euro-dollar exchange rate stands at 1.166, providing support for ex-EU scrap prices, despite the decline in sea freight rates from the region. In the US, sources report that local scrap prices have moved up by $20-30/mt during the January buy-cycle, exerting pressure on the already lower availability of scrap for export yards. Winter conditions are taking a toll on scrap supply and negatively impacting scrap flow to yards in both the US and the EU. Turkish mills are trying to increase their local rebar prices this week due to strong scrap indications. However, the general sentiment on the demand side is negative due to the adverse weather conditions in Turkey. The biggest obstacle facing the upward trend of deep sea scrap prices is the lackluster demand in the steel segment, market sources report. On the other hand, the lack of a high number of scrap offers means the market fundamentals in the scrap segment will still play a greater role in determining the future price trend.
Meanwhile, ex-Romania short sea HMS I/II 80:20 scrap prices have moved up by another $5/mt to $355-357/mt.