The rapid increase of deep sea scrap prices for Turkey has continued with an ex-Baltic cargo disclosed to the market today, October 13.
SteelOrbis has learned that a Marmara-based mill has concluded the deal from Sweden for 12,000 mt of HMS I/II 80:20 scrap at $470/mt CFR and 18,000 mt of shredded scrap at $490/mt CFR. Prior to this transaction, ex-Baltic scrap quotations were standing at $463/mt CFR in a recent deal.
With the current ex-Baltic scrap prices, ex-US levels for benchmark HMS I/II 80:20 scrap are now estimated to be around $470-475/mt CFR, while ex-EU scrap prices are in the range of $460-465/mt CFR. A long steel producer in Turkey stated that the additional production costs such as higher energy and raw material prices have not yet been passed on to customers and so there is room for a further price increase in the steel market. In all segments as well as in the scrap market, prices are firm and sellers are cautious since with every new sale prices are showing a further rise. Another SteelOrbis contact stated that the shortage of vessels and volatile freight rates have also contributed to the uptrend of prices.
Meanwhile, expectations for prices have also changed in the short sea segment. Market players believe that for HMS I/II 80:20 scrap $450-455/mt CFR Turkey is now more acceptable and that $445/mt CFR cannot be found anymore.
A supplier in western Germany reported that they have received bids from Antwerp for HMS 1/2 at €325/mt DDP and for HMS I/II 70:30 scrap at €335/mt DDP. Major producers in the EU are keeping their domestic scrap procurement prices stable, while some players believe that even with this strategy it will be hard for them to attract all the tonnages they need.
The local Turkish rebar market is supporting the current deep sea scrap price levels with a healthy spread. The ongoing shortage of some dimensions contributed to by the rises in the scrap segment and the depreciation of the Turkish lira is causing traders to purchase rebar. Some producers are revising their domestic rebar quotations on a daily basis this week.