There have been several deep sea scrap deals disclosed in the Turkish market today, June 12, all signaling that the scrap price trend in Turkey remains strong.
SteelOrbis has been informed that a Marmara-based Turkish mill has concluded an ex-US booking with the HMS I/II 80:20 price standing at $266/mt CFR. Following this deal, the ex-US HMS I/II 80:20 price is now in line with the prices of other premium qualities.
Meanwhile, an ex-UK scrap deal has also been shared with the market. The booking was made on June 10 by an Iskenderun-based mill for 18,000 mt of HMS I/II 80:20 scrap at $262/mt CFR.
Moreover, an additional 15,000 mt of HMS I/II 80:20 scrap has been sold to an Izmir-based producer from the Baltic region at $265/mt CFR. Although the details of this deals has not been confirmed by the seller or the buyer, the general opinion in the market is that it has in fact been transacted.
As a result the general range of the HMS I/II 80:20 scrap is now at $262-267/mt CFR Turkey, while there is hardly any factor in favor of a trend reversal.
A significant volume of import scrap has been bought by Turkish mills in the first half of June, for July shipments. Market sources state that demand for import scrap in Turkey continues to be observed. Although industrial production has started to pick up in the European Union, there are holidays ahead and so supply in the region is expected to remain strong, according to market sources. Also, some market sources state that the scrap supply volume in the Baltic region is currently at good levels. Meanwhile, domestic demand in the long steel segment in Turkey has slowed down a bit as buyers have started to show some resistance to higher prices, though a mill in Turkey’s Iskenderun region has decided to resume production earlier than planned, citing the lively demand in the local market. It is known that there has been a shortage of long steel products in the Iskenderun region for some time now. In the local Turkish flat steel market, prices are also moving up and hot rolled coil (HRC) buyers in Turkey have been actively restocking with HRC of several origins, including domestic and import products.
