This week seems to have finally brought some positive sentiment to the import scrap market of Turkey. After the continuous fall, a couple of deals have been closed at a stable price
In the meantime, scrap sellers’ target prices have increased. European sellers, facing slower collection due to the recent price fall, are voicing $225-230/mt CFR for HMS I/II 80:20. The same level is heard from Baltic region-based suppliers, who were rather active in the market earlier this week.
The ex-US price for HMS I/II 80:20 is at $228-230/mt CFR to Turkey, up from $226/mt CFR in the most recent deal. As a result, sellers are also trying to strengthen their positions, despite the news about a $30-50/mt decrease in scrap prices in some regions of the US. At the end of the week, there was a rumor in the market of a sale from the US for HMS I/II 95:5 and shredded scrap. According to the sources, the HMS I/II 95:5 was booked at $232/mt CFR and the price of HMS I/II 80:20 was calculated at $228/mt CFR. However, the information was not confirmed by the time of publication.
In addition, market sources state that Turkish mills' demand for short sea scrap has increased as well. However, the price idea from sellers in the Adriatic region, Romania and Bulgaria is at $225/mt CFR for HMS I/II 80:20 scrap, versus $215-217/mt CFR in the most recent deals. No firm offers have been reported ex-Rostov as supplies are limited by Russia’s export quota. Moreover, it seems that the suppliers would like to see how high scrap prices in Turkey might go before coming back with offers, SteelOrbis understands.
Although the market trend lacks sustainability, most players believe the prices will increase in the coming transactions by $3-5/mt. However, no surge in prices is foreseen for now with the uptrend expected to be short-lived.