Two new deals in Turkey’s import scrap market show that prices have maintained their strength and even increased.
SteelOrbis has learned that a Marmara-based mill has concluded an ex-Baltic deal for HMS I/II 80:20 scrap at $451/mt CFR and bonus grade scrap at $466/mt CFR. The cargo will be shipped in the second half of November. The previous deal from the same region was closed at $444/mt CFR Turkey for the benchmark HMS I/II 80:20 scrap.
Meanwhile, a producer in Iskenderun has concluded an ex-EU transaction for HMS I/II 75:25 scrap at $440/mt CFR, shredded scrap at $455/mt CFR and bonus grade scrap at $460/mt CFR, for November shipment. The deal was closed two days ago. Some market players state that, due to the quality of suppliers’ material, HMS I/II 80:20 scrap can still be considered to be at $445/mt CFR, $5/mt higher as compared to the levels recorded in the most recent deal from France.
Additionally, an Iskenderun-based mill is reported to have concluded an ex-Venezuela booking for HMS I/II 80:20 scrap at $450/mt CFR. The cargo will be shipped in October. As the tonnages from Venezuela are rising, some Turkish players have stated that this destination deserves to be monitored closely as it holds potential for Turkey as a new regular source of scrap supply. In the January-August period this year, Turkey imported 519,273 mt of scrap from Venezuela, bringing the country up the tenth place among Turkey’s main scrap suppliers.
Some market players state that this revival in deep sea scrap prices is stronger than their initial expectations, while others are not surprised. A major European scrap seller stated that, except for the slower demand for Turkish finished steel, all indicators have been positive. Meanwhile, trade in the local US scrap market has started slowly, while market sources are hoping to have greater clarity on Midwest, Ohio Valley and southern scrap prices before the end of business on Thursday. However, sentiment has changed a little in the US, SteelOrbis understands, as some players have started to voice their expectations of “a mostly stable price trend.”