An older scrap booking done from Belgium has surfaced in the Turkish market today, January 3, with the benchmark HMS I/III 80:20 scrap price remaining almost stable. However, sentiment remains positive in Turkey’s import scrap market and market players think that the upcoming deals may be closed at higher levels due to Turkish mills’ needs for scrap for February shipments.
SteelOrbis has learned that an ex-Belgium scrap deal was done by an Iskenderun-based mill on December 29, for 30,000 mt of HMS I/II 80:20, 5,000 mt of shredded scrap and 5,000 mt of P&S scrap at the average level of $402/mt CFR. According to the details, the estimations for HMS I/II 80:20 scrap stand at $397/mt CFR, very similar to the previously announced deal closed at $396/mt CFR from the UK.
The inventory levels of sub-collectors in the EU are good, SteelOrbis hears. One sub-collector said that the flow to yards may be easier since most stocks are full. “Our most recent sales to export yards were done at €320/mt DAP for HMS I/II 70:30 and at €330/mt DAP for HMS I/II 80:20 scrap. I do not think we will accept lower prices in near future,” the source commented. “There is a significant problem with collection. Flow has declined by 20-30 percent as compared to last year. But maybe with the upward corrections in prices, the situation can be fixed,” the source added. Another sub-collector in Germany reported that they are not sure about the potential for demand from European steelmakers this month, “It all depends on the minimum energy price levels to be determined in mid-January.” While the market waits for the US to return from the holidays, the local prices are expected move up and support exports. “Collection on the US side is also problematic and the storm in northern US is hitting logistics even harder,” another player commented. Meanwhile, traders in the local Turkish rebar market are cautious amid the rising prices. Turkish mills have increased their official domestic rebar quotations to $700-715/mt ex-works. This move is interpreted as a preparation for higher scrap prices from traders. Again, traders indicate that construction sites in Turkey traditionally start to restock at a slow pace as of mid-February.
