In a new ex-US scrap deal to Turkey, benchmark HMS I/II 80:20 scrap prices have almost reached $460/mt CFR, exceeding initial expectations.
SteelOrbis has learned that a producer in the Marmara region concluded the ex-US booking at the end of last week for HMS I/II 80:20 scrap at $459.50/mt CFR and shredded scrap at $480/mt CFR. Prior to this booking, SteelOrbis’ estimation for US origin HMS I/II 80:20 scrap was in the range of $457-460/mt CFR.
Market players state that the upward movement of Turkey’s import scrap prices will continue amid lively demand. Scrap supply is not high and suppliers are in no rush to conclude sales as they also expect prices to increase further. One market player expressed the view that the current situation can be explained by the lack of supply, which is the result of the negative initial sentiments regarding the steel industry for the fourth quarter. With these expectations not being realized, and with rebar and billet prices maintaining their levels, or even increasing, Turkish mills are seeking deep sea scrap cargoes. However, sub-collectors do not have enough material to support the demand from export yards. Another market player stated that some mills have started to seek cargoes for shipment in December, which may also exert further upward pressure on prices. Meanwhile, scrap demand is good not just in Turkey but in the overall international market, creating alternative markets for scrap suppliers.