Several ex-Baltic deals transacted on different dates have been disclosed in the Turkish market, while the deals in question have indicated a gradual increase in prices.
SteelOrbis has learned that an Iskenderun-based producer has concluded the most recent ex-Baltic deal for 28,000 mt of HMS I/II 80:20 scrap at $460/mt CFR and 7,000 mt of bonus grade scrap at $470/mt CFR. The cargo will be shipped in the second half of April. Due to the increases observed in ex-Baltic and ex-Canada booking prices to Turkey in the middle of the current week, SteelOrbis’ estimation for ex-Baltic HMS I/II 80:20 scrap was in the range of $460-465/mt CFR, and has remained the same.
Meanwhile, two more - relatively older - ex-Baltic transactions have been disclosed. In the first one, believed to have been done on Monday or Tuesday this week, HMS I/II 80:20 scrap was bought at $455/mt CFR Iskenderun. The second one is believed to have been closed mid-week with HMS I/II 80:20 scrap standing at $458.5/mt CFR Marmara.
Turning to the short sea side, market players state that the market is silent and is waiting for a stronger signal from the deep sea segment. Demand in short sea scrap suppliers’ local markets is also strong, causing collection prices to rise. Due to the ongoing sharp increases in freight costs, it is hard to find available ships. According to market players, some suppliers have taken a step back amid the difficulties in giving sustainable offers to Turkey. Meanwhile, the most recent deals from the Adriatic region and Romania have been closed at $437-438/mt CFR Izmir and Marmara for HMS I/II 80:20 scrap. For next week, levels of $440/mt CFR and above are targeted by suppliers in these regions. Additionally, ex-Israel HMS I/II 75:25 scrap has been sold to Iskenderun at $420/mt CIF this week, while suppliers are aiming for $425/mt CIF Iskenderun for next week, though demand for this grade is slow as mills are trying to proceed with deep sea cargoes first, as one source stated.
It is observed that Turkish mills still need to book many deep sea cargoes, though they are trying not to cause a surge in quotations. Demand is expected to continue next week and the market anticipates new deep sea bookings will be heard. According to sources, a 22,000 mt cargo of rebar has recently been traded to Peru at $640/mt FOB for May shipment. Turkey is offering rebar to the foreign markets for April-May shipments. The sharp fluctuations of the Turkish lira-US dollar exchange rate is taking its toll on the local Turkish rebar market, according to market players. However, it is known that the other steel segments in Turkey such as HRC and wire rod are quite strong. Deep sea scrap quotations in Turkey are expected to continue their uptrend in the coming round of purchases.