Ex-Europe scrap prices in Turkey settle at anticipated levels in deals

Friday, 07 January 2022 15:09:25 (GMT+3)   |   Istanbul
       

Activity in Turkey’s import scrap market has been lively in the second half of the current week, while new ex-Europe scrap deals are signaling increased price levels.

SteelOrbis has learned that a Black Sea-based producer concluded a deal from Belgium on January 5 and the cargo consists 22,500 mt of HMS I/II 80:20 scrap, 7,500 mt of shredded scrap, 7,500 mt of a mixture of P&S and HMS I scrap and 2,500 mt of new cuttings at the overall average level of $465/mt CFR. The cargo will be shipped in early February. Based on this deal, the benchmark HMS I/II 80:20 scrap price is estimated to be at around $456.5/mt CFR, $3.5/mt higher than the level recorded in the previous ex-Belgium deal disclosed on December 24.

Additionally, a producer in Turkey’s Iskenderun region bought another ex-Belgium cargo, consisting of HMS I/II 80:20 scrap, shredded scrap, P&S scrap and HMS I scrap at the average level of $472/mt CFR. While the tonnages in the cargo have not been disclosed to the market, SteelOrbis has learned that half of the tonnage consists of HMS I/II 80:20 scrap. Hence, the benchmark scrap price is estimated at around $462/mt CFR. Since the ex-US deals reported by SteelOrbis yesterday, January 6, SteelOrbis’ price estimation for ex-EU benchmark scrap was revised upward to $460-465/mt CFR and European scrap quotations have in fact settled at the anticipated levels.

Meanwhile, a US scrap seller has signed a contract to Egypt for a mixed cargo with the average price level of $480/mt CFR. Predominantly, the cargo consists of HMS I/II 80:20 scrap, but no further details are available at the time of publication.

Market players state that this recent round of scrap imports has caused prices to move up, and so buyers have decided to wait until next week to conclude more deals. “They cannot wait for long. They are trying to avoid a rapid rise in prices,” a seller reported. Having said that, deep sea scrap prices in Turkey are not expected to surge to very high levels as demand for Turkish steel is still sluggish, while costs for the mills are rising.  Nevertheless, sentiment in the market remains positive and new transactions are expected early next week.


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