As Turkish mills are struggling to find deep sea cargoes, import scrap prices have continued their rising trend.
An Iskenderun-based mill concluded an ex-UK scrap transaction on Friday, November 13, for a cargo totaling 38,000 mt consisting of 5,000-10,000 mt of shredded scrap at $323/mt CFR and with the rest of the cargo to be completed with HMS I/II 80:20 scrap at $318/mt CFR. The latest shipment deadline for the cargo is December 31. The most recent ex-EU deal in Turkey was disclosed on Friday, from Germany, with HMS I/II 80:20 scrap prices at $303/mt CFR, for late January shipment.
Market sources state that Turkish mills are having a hard time finding scrap cargoes to meet their needs, and this situation is leading them to increase their purchase quotations for deep sea cargoes. Demand in the local and export markets received by Turkish steelmakers is supporting the scrap market, while suppliers prefer not to give offers to Turkey for now due to their expectations of a further increase in prices. While some market sources state that the future trend of the scrap market will depend on China’s purchases and its purchase prices, there are conjectural numbers voiced for prime grade scrap at around $330-340/mt CFR Turkey. The Chinese market is expected to remain lively at least until the Chinese New Year which is in February, sources state.