Turkey’s import scrap prices have remained relatively stable following the recent price rises observed in the segment. Since October 25, when prices started to move up from the bottom of $350/mt CFR on average, Turkey’s import scrap quotations have increased by $26/mt in total.
SteelOrbis has heard that an ex-EU scrap deal done by an Iskenderun-based producer was closed at $373/mt CFR, while a Marmara-based producer concluded an ex-UK booking at $372/mt CFR, both for HMS I/II 80:20. As a result, European scrap prices have increased by a mere $0.5/mt on average.
Additionally, two ex-US deals are rumored to have closed at $378/mt CFR Izmir and $378-379/mt CFR Marmara. The deals were not confirmed by the time of publication, but they are in line with SteelOrbis’ reference prices in the range of $377-380/mt CFR.
While major mills in Turkey continue to book deep sea scrap, others are quiet in the segment, focusing on alternative scrap sources such as domestic scrap, ship scrap or short sea scrap. The number of Black Sea origin billet offers to Turkey is on the low side. Billet prices on CFR Turkey basis have increased by $15/mt on the lower end over the past week to $510-520/mt CFR. Meanwhile, Turkish mills’ domestic rebar prices are in the range of $575-585/mt ex-works, with a discount of approximately $10/mt available for large tonnages. As a result, deep sea scrap prices are exerting pressure on producers’ margins and so there are still doubts regarding the sustainability of the current prices in the long run.
