Ex-Baltic prime grade scrap prices for Turkey have increased further in a new deal disclosed to the market today, February 26.
SteelOrbis has learned that an Iskenderun-based Turkish producer has concluded the booking for ex-Denmark cargo consisting of HMS I/II 80:20 scrap at $452.5/mt CFR and shredded scrap at $457.5/mt CFR, for April shipment. Prior to this deal, the most recent transaction from the Baltic region was closed at $449/mt CFR Turkey for the benchmark HMS I/II 80:20 scrap.
Also, a relatively old deal from the EU has been shared with the market today, indicating the HMS I/II 80:20 scrap price to be at $436/mt CFR Iskenderun, with the deal concluded on Monday, February 22. This level is currently considered to be very low as several deep sea scrap transactions have been done since Monday and the most recent ex-Belgium cargo indicated $448/mt CFR for HMS I/II 80:20 scrap.
According to market sources, demand in Turkey’s import scrap market is good and there is a willingness on the mills’ side to conclude new deals. One market player stated that the uptrend in the deep sea scrap segment will continue in the coming period even though a small pause could be seen, while SteelOrbis understands that some suppliers have decided to wait before selling to Turkey due to their expectations of a further rise in prices. It has been heard that some US suppliers are targeting closer to $500/mt CFR Turkey for HMS I/II 80:20 scrap. The increases observed in February are considered to be different from those recorded last December, according to market sources, since this time seasonal advantages are a factor and vaccination programs against Covid-19 are being rolled out across the world, and at the same time Turkish mills have little room to wait for new bookings for April shipment.