Ex-US prime grade scrap quotations in Turkey have risen slightly in a new deal reported to have been concluded today, March 31.
SteelOrbis has learned that an Izmir-based producer has bought the ex-US cargo consisting of HMS I/II 80:20 scrap at $430/mt CFR, shredded scrap at $435/mt CFR and P&S grade scrap at $440/mt CFR, for May shipment. As compared to the level recorded in the previous ex-US booking, benchmark HMS I/II 80:20 scrap has increased by $3/mt from $427/mt CFR Turkey.
Following the transactions done on Friday, March 26, Turkey’s import scrap market was relatively silent amid the sharp fluctuations observed in the Turkish lira-US dollar exchange rate. This deal now proves that deep sea prime grade scrap quotations in Turkey are set to increase. It is already known that Turkey needs large tonnages of deep sea scrap cargoes for May shipment. In addition, SteelOrbis has heard that Turkish mills are receiving rebar demand from the Far East, with Chinese prices at high levels. Some market sources state that Turkey has sold significant tonnages of rebar to the region, even though these have not been disclosed to the market yet. This supports the sentiment in the market, as well as the international flat steel market. Having said that, most market players think that scrap prices will move up at a slow pace in the coming period as all parties want to be more cautious in this round of bookings. One negative factor in the market seems to be the exchange rate, which has a big influence on the decisions made by buyers and sellers. Buyers are concerned over the lira losing strength and all players are following the US dollar-euro exchange rate closely. On the other hand, the local Turkish rebar market has also been hit by the depreciating lira, making it harder for players to trade. If the trend in the scrap market continues, some movement may also be seen in the local Turkish rebar market.