As Turkey starts buying deep sea cargoes for November shipment, prices are signaling a rise.
SteelOrbis has learned that an ex-US cargo has been bought by an Izmir-based mill with HMS I/II 80:20 scrap at $443/mt CFR, with shredded and bonus scraps included in the cargo at $458/mt CFR. The cargo will be shipped in the first half of November. As a result, US suppliers have made an appearance after a long period of absence, with the last deal recorded on September 15, when the HMS I/II 80:20 scrap price was at $441.5/mt CFR Turkey.
Also, another deal from the Baltic region to Turkey has been heard today, with a Marmara-based mill reportedly having bought a cargo with HMS I/II 80:20 scrap standing at $434/mt CFR. No further details have been shared about this deal, but market players state that it was done at least three days ago. This level is in line with the most recent ex-Baltic transactions which were closed at $433-434/mt CFR Turkey.
A further revival is expected in Turkey’s import scrap as the mood has changed in the most recent deals. US suppliers will mostly wait for their local scrap market to settle before they return to the export market, though it is reported that they are aiming for prices at around $445/mt CFR. Since there is a lack of shredded scrap in the international market and due to buyers’ insistence on keeping premiums at $15-20/mt, HMS I/II 80:20 scrap prices have support. While China is out of the market for its long holiday, some uncertainties exist, particularly relating to Turkey’s ability to conclude steel export sales.