Turkey import scrap market cautiously optimistic

Friday, 11 October 2019 17:25:51 (GMT+3)   |   Istanbul

Upward expectations prevail in Turkey’s import scrap market, following the increase in the US sale. Mills are showing some considerable demand for the raw material, however the market still lacks fresh sales to prove the uptrend is sustainable. In the meantime, scrap offers to Turkey increased.

The ex-Baltic HMS I/ II 80:20 is estimated at $234-235/mt CFR Turkey with one sale rumored as closed at $235/mt CFR. European offers for the same scrap grade are reported at $230-232/mt CFR; the allocation is said to be limited due to the slow collection after the sharp drop in prices. On the other hand, the EU scrap sellers might be more eager to sell to exports as the domestic steel sales in the EU have been slow for a while. The US' targets for HMS I/ II 80:20 are at around $234-235/mt CFR versus $233/mt CFR in the latest sale.

Business activity in the short sea segment has increased. Romania has reportedly sold HMS I/ II 80:20 at $228-229/mt CFR. In addition, SteelOrbis has confirmed that an Adriatic scrap supplier has sold to a Turkish mill at $227/ mt for the same grade. The cargoes will be shipped at November. A Russian supplier has also concluded deals with Turkish mills at $231/mt CFR for A3 scrap, up by $2/mt since earlier this week. These deals were made to Izmir and Marmara regions and the total tonnage is around 15,000-20,000 mt.

Market players are hopeful for some positive developments in the scrap segment. Some sales along with some good demand coming from Turkey, the increased number of orders from Egypt, probably as a result of the safeguard decision, might also support the pricing. However, most sources agree that the overall scrap situation remains shaky for now.

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