Turkey continues to accept higher price levels for deep sea scrap cargoes. Another booking done from the Baltic region has supported the upward trend, though it remains to be seen how long the trend will last.
SteelOrbis has heard that an Iskenderun-based Turkish producer has concluded an ex-Estonia deal for HMS I/II 80:20 scrap at $365/mt CFR and bonus scrap at $385/mt CFR. As a result, ex-Baltic scrap prices have increased by $2.5/mt.
SteelOrbis understands that there are several Turkish mills in the market seeking deep sea scrap cargoes, in particular following the recent price increase. Sellers are aiming for higher levels amid the current demand, and some have even started to voice $370s/mt CFR again. There is the positive impact of the agreements the United Auto Workers Union (UAW) signed during the past week, which will end the weeks-long strike against Detroit’s automakers. US-based players are very hopeful that domestic scrap prices will increase in the November buy-cycle. On the other hand, a source at a major Turkish producer said import scrap prices may be close to the peak, if not already there. Following the ex-US and ex-Baltic deals, SteelOrbis has revised its European HMS I/II 80:20 scrap quotations gradually to $360/mt CFR. Since the end of October, deep sea scrap quotations have gained $11/mt on average and now are standing in the narrow range of $360-365/mt CFR.
Earlier today, November 1, Turkey’s Kardemir issued its rebar price at TRY 15,825/mt ($559/mt), excluding VAT, and succeeded in selling around 35,000 mt. In general, workable domestic rebar prices in Turkey today are in the range of $555-566/mt ex-works. There are yet-to-be-confirmed rumours of an Izmir-based mill accepting $550s/mt ex-works for domestic rebar sales. Hence, it cannot be said that the uptrend observed in the scrap segment is supported by finished steel sales. Meanwhile, scrap trade activity in Pakistan has continued to lack strength amid continuing issues with opening letters of credit (LCs) and, although some increases have been reported in new offers for shredded scrap, the tradable price level has remained unchanged over the past week. Also, import scrap prices in India have risen slightly amid a tightening of supply, but buyers have been cautious due to the weak local currency and the uncertain trend in the rebar market, and so only small-volume deals have been reported.
