Turkey’s import scrap market has continued to record successive price increases, while sellers are in no rush to conclude sales, trying to remain on the safe side amid the rises observed in collection prices. On the other hand, Turkey continues to show demand for scrap with the support of rising finished steel prices and higher steel demand.
SteelOrbis has learned that an Iskenderun-based mill concluded an ex-US booking yesterday February 23, for 11,000 mt of HMS I/II 85:15 scrap at $455/mt CFR, 14,000 mt of shredded scrap at 470/mt CFR and 7,000 mt of P&S grade scrap at $473/mt CFR. This deal indicates that ex-US HMS I/II 80:20 scrap is now standing at $450s/mt CFR, though it is known that some sellers are now targeting $460s/mt CFR Turkey for this grade. Before this deal, SteelOrbis’ reference price for this grade was in the range of $430-435/mt CFR.
Another deal from the Netherlands was done by a Marmara-based producer for HMS I/II 80:20 scrap and bonus grade scrap standing at $440/mt CFR and $462/mt CFR, respectively. An ex-Uk booking was done by an Izmir-based mill with HMS I/II 80:20 scrap at $445/mt CFR. Previously, the ex-EU scrap price was at $428/mt CFR as fixed in a deal.
Another deal from Poland has been closed by another Iskenderun-based mill today, February 24, for 18,000 mt of HMS I/II 80:20 scrap at $445/mt CFR and a total of shredded and bonus grades at $465/mt CFR. Another ex-Baltic deal was closed by an Izmir-based producer for HMS I/II 80:20 scrap at $450/mt CFR. Ex-Baltic prices have increased from $430/mt CFR in this deal.
An EU-based export yard increased its collection prices to €360/mt delivered to Amsterdam port, SteelOrbis reported yesterday that a German sub-collector received bids from the Netherlands at €365/mt delivered. Some market players said that, even with the rising collection prices, scrap flow to yards is not fast. “Everyone wants to see where this is going and so they keep what they have in hand,” a source said. Another source commented, “At one point, these waiting parties will want to realize their profits and start to minimize risks. That will be the turning point.” SteelOrbis hears that some premium scrap suppliers are now aiming for $460s/mt CFR. Besides Turkey, scrap demand in Bangladesh and India is also lively. Also, a European scrap supplier has reported that demand in the EU region has accelerated, particularly for bonus grade which is reported to be at €400/mt delivered to mill. “Prices from domestic producers are rising sharply, but we still struggle to find scrap,” the source added. Turkey’s effort to rebuild the earthquake-hit region has started. It is heard that, under the scope of the state of emergency declared in the region, the Turkish government is opening tenders for constructors via invitations. Already tenders for 3,770 units have been closed in six cities. These efforts are expected to continue as the current government has promised to rebuild the region within a year. This also supports the local rebar market, which is already showing the traditional recovery at the start of the construction season. Domestic rebar prices in Turkey have moved up by $50/mt since the earthquake and are in the range of $755-775/mt ex-works. Most Turkish mills have decided to close their domestic rebar quotations this week and they are monitoring raw material and semi-finished steel prices. Billet prices in Turkey are also rising. GCC origin billet offers to Turkey are in the range of $610-620/mt FOB. Although Russia is on holiday and there are no offers voiced by sellers, Russian billet offers are expected to reach to $630-640/mt CFR. Asian billet offers are at $630-640/mt FOB, considered unacceptable for Turkey.
Turkey’s short sea scrap procurement prices are also rising. SteelOrbis has learned that a Marmara-based producer has bought a Romanian HMS I/II 80:20 scrap cargo at $428/mt CFR. It is known that short sea suppliers are also aiming for higher levels and are monitoring the deep sea segment closely. For Israel origin HMS I/II 80:20 scrap, sellers are aiming for $420-425/mt CFR, SteelOrbis hears. Under the current circumstances, Israeli suppliers are staying quiet and are in no rush to conclude sales.
