Turkey has concluded a deep sea scrap deal with a further increase indicated in the price of scrap.
SteelOrbis has learned that an Iskenderun-based producer has concluded an ex-Murmansk booking for 6,500 mt of HMS I/II 95:5 scrap at $512/mt CFR. According to this information, market players estimate the HMS I/II 80:20 scrap price to be at $492-497/mt CFR, depending on the premium paid for the material ($15/mt or $20/mt). Some players state that the price should not be considered to be lower than $495/mt CFR. Accordingly, SteelOrbis will keep its ex-Baltic HMS I/II 80:20 scrap price estimation in the range of $490-495/mt CFR, but has increased its ex-US scrap price estimation to $495/mt CFR Turkey.
The general idea in Turkey’s import scrap market is that deep sea scrap prices have more room to increase. While some sources have voiced their doubts about the pace of the rising trend observed in October, most believe prices will reach and exceed $500/mt CFR for prime grades towards the end of this week. The price idea of ex-Baltic sellers for HMS I/II 80:20 scrap to Turkey is at $495/mt CFR, SteelOrbis understands.
During his welcome speech at the SteelOrbis 2021 Fall Conference & 85th IREPAS Meeting held virtually on October 18, Murat Cebecioğlu, chairman of IREPAS, said that supply is no longer an issue in the global long steel products market and that demand will be the driving factor from now on, although it will be rather slow for a while as prices are normalizing and delivery periods are becoming shorter. It is known that Turkey needs export sales to maintain its offer levels for long steel, which have been rising for some amid the support provided by the local market.