With the silence in Turkey’s import scrap market coming to an end with new deals from the US and the Baltic region, a clear increase has been observed in benchmark HMS I/II 80:20 scrap prices.
SteelOrbis has learned that a Marmara-based Turkish steel producer has concluded the ex-US transaction for 22,000 mt of HMS I/II 80:20 scrap at $448/mt CFR and 8,000 mt of shredded scrap at $463/mt CFR. The cargo will be shipped in the second half of November. Since it has been a long time since an ex-US booking was heard in Turkey, the trend of the price in the deal is important, with the price clearly rising from the $443/mt CFR level recorded in the previous ex-US deal.
Meanwhile, another ex-Baltic transaction done by a Iskenderun-based mill has also been confirmed. The cargo consists of HMS I/II 80:20 scrap at $444/mt CFR, shredded scrap at $459/mt CFR and rail scrap at $464/mt CFR, and will be shipped in the second half of November. The previous ex-Baltic booking was closed at $434/mt CFR.
With the recent ex-EU booking closed at $440/mt CFR Turkey, it can be said that the different regional prices are now aligned with each other. Also, while the mood in the market is more optimistic today, uncertainties continue to surround the international steel market. At the meeting held by Turkey’s foreign trade association for steel yesterday, attendees commented on some problems faced by the market, mainly freight charges, the lack of vessels/containers, and the shortage of energy sources. While the freight numbers are not expected to return to normal levels in the coming six to seven months, they could also increase further as the winter is traditionally livelier in terms of transportation, some attendees in the sector commented. Also, the slowdown of the Chinese economy is being monitored closely, but all players agree that China has changed its stance and will depend more on its domestic consumption for growth. However, the initial expectations of Turkey filling the gap resulting from China’s absence from the Southeast Asian markets have not been realized, attendees stated, as demand in the region has also shrunk. Hence, supply of Turkish steel has returned to pre-Covid levels and market players believe that demand will be a stronger determining factor for pricing in the coming period.