Deep sea scrap prices in Turkey indicate an increase in the latest deals disclosed to the market.
An Iskenderun-based mill has bought a cargo from the Baltic region with the average price standing at $493/mt CFR, for early March shipment. The cargo consists of bonus and HMS I/II 95:5 scrap, signaling a range of $473-476.5/mt CFR for benchmark HMS I/II 80:20 scrap. This level is $5.75/mt higher on average than SteelOrbis’ previous estimation for this grade.
Meanwhile, a deal from Venezuela was done by another mill in Iskenderun, with the HMS I/II 80:20 scrap price reportedly at $483/mt CFR.
Market players state that this rapid price increase could be caused by Turkish mills’ accelerating demand. Turkish producers are making inquiries, while the number of sellers in the market is lower than the number of buyers. “They waited a lot and so are now forced to accept higher levels,” one market player commented. “Even higher numbers can be expected in the coming round,” another player reported. Also, the mood in the European segment has changed. Previously, market players stated that collection prices in the region were expected to decline by €5-10/mt, but suppliers are resisting the pressure coming from mills, SteelOrbis understands. “The flow to yards is slow. We have sold most of our inventories and no revival in flow is anticipated in February. If German mills’ appetite is at good levels, a rise in prices is possible,” a German scrap supplier commented.
Also, Turkey’s Petroleum Pipeline Corporation (Botaş) announced yesterday, January 31, that natural gas flow from Iran to Turkey has started again in limited quantities and that the 40 percent reduction in natural gas flow to industrial consumers has been eased to 20 percent as of 08:00 on January 31. Botaş had stated on January 20 that natural gas flow from Iran to Turkey would be cut off for 10 days for technical reasons.
Meanwhile, Kardemir opened its domestic rebar sales today, February 1, at $707/mt ex-works with the exchange rate standing at TRY 13.38 to the US dollar, and managed to sell around 35,000 mt before closing its sales. The price level in question was lower than other Turkish producers’ official domestic rebar offers which are mostly higher than $720/mt ex-works, though some discounts are offered for large tonnages.
