As anticipated by most market players, deep sea prime grade scrap prices in Turkey have increased above the level of $430/mt CFR in a new ex-US scrap booking.
A Black Sea region-based Turkish mill has concluded the transaction in question for shredded scrap at $440/mt CFR and bonus grade scrap at $445/mt CFR. According to this deal, the US origin HMS I/II 80:20 scrap price is estimated at $435/mt CFR Turkey. In the previous deal, the benchmark HMS I/II 80:20 scrap from the US was transacted at $418/mt CFR.
As SteelOrbis reported at the end of last week, some market players were thinking that deep sea prime grade scrap prices were set to increase to $430/mt CFR and above in the current week, and some others had even voiced the possibility of higher levels such as $435-440/mt CFR Turkey. The latter seem to be right in their estimations, since prices are expected to continue their uptrend as Turkish mills will eventually start to purchase scrap for April shipments. According to market sources, Turkish steelmakers have not concluded many bookings for April shipment yet. In the US, severe winter storms in the Midwest and in southern states have already had a significant negative impact on scrap collection, which may drive scrap prices higher by the time the market settles next month. Meanwhile, some market sources have drawn attention to the situation in the local Turkish rebar market, noting that local rebar prices in Turkey have already created room for import scrap prices to move up.