After the Feast of Sacrifice holiday, a few import scrap deals in Turkey, done last week, have been disclosed to the market. According to sources, the most recent one was agreed last Thursday with a Belgian supplier to a Marmara region-based mill for 10,000 mt of HMS I/II 75:25, 20,000 mt of shredded scrap and 10,000 mt of HMS I and new cuttings at the overall average price of $282.5/mt CFR. Market players estimate the HMS I/II 80:20 level in this deal as $277-278/mt CFR, though some believe it may be around $280/mt CFR around. In addition, early last week deals from the UK, Belgium and Germany were closed for HMS I/II 80:20 at $265/mt CFR, $271.5/mt CFR and $275/mt CFR respectively. Although there is no solid confirmation on the abovementioned deals in the market, most players consider them done.
However, it is mainly believed in the market that scrap prices will inch up further in the coming deals. Offers for premium deep sea HMS I/II 80:20 quality scrap are reported at $280-285/mt CFR and most sources believe these levels will be supported by higher semi-finished and finished steel price levels. After the holiday, the local HRC target price in Turkey has increased to $500/mt ex-works, while slab prices to Turkey have hit $445-450/mt CFR in offers. In addition, CIS-based square billet suppliers, according to sources, have been voicing offers at $400-410/mt FOB levels, though lower prices are still considered possible, SteelOrbis understands.
