After a silent period, an ex-UK scrap deal has been disclosed to the Turkish market today, February 5, indicating a firm price level.
SteelOrbis has learned that an Izmir-based Turkish producer has concluded an ex-UK transaction for HMS I/II 80:20 scrap at $399/mt CFR and shredded scrap at $404/mt CFR, for March shipment. Prior to this booking SteelOrbis’ estimation for ex-EU HMS I/II 80:20 scrap was in the range of $397-400/mt CFR.
SteelOrbis observes that Turkey’s import scrap market is experiencing livelier activity these days in terms of demand. Market players state that there are negotiations underway. The first signal of a rebound was given by the local Turkish rebar market in recent days as traders reported that prices had hit the bottom and that demand was back. As the sharp downtrend of the local Turkish rebar market has come to a halt, SteelOrbis has learned that a 30,000 mt cargo of wire rod has recently been sold to the Netherlands at $710/mt CFR or around $680/mt FOB. Some market sources believe that there are some favorable signs coming from the Chinese market today, February 5, though how China will return from the New Year holiday (February 12-17) matters more than the current situation. On the short sea side, some sellers have retracted their offers to Turkey due to their expectations of an increase in prices, SteelOrbis understands. Market players expect new deals to be heard in the market very soon, while prices are at least foreseen to remain firm and may potentially move upwards.