Older deals from last week have been shared in Turkey’s import market, showing a softening from the UK and an increase from the US. As a result, the deep sea scrap price range in Turkey has widened slightly as compared to last week.
An ex-UK scrap deal has been done by a Marmara-based Turkish steel producer with the HMS I/II 80:20 scrap price at $352/mt CFR. This price is $2/mt lower than the previous ex-UK scrap deal.
Meanwhile, ex-US scrap bookings were closed at higher levels. An ex-Tampa deal is rumored to have been closed for HMS I/II 85:15 scrap at $365/mt CFR, which indicates $361/mt CFR for the benchmark HMS I/II 80:20 scrap. On the other hand, a mill in Turkey’s Black Sea region has done another ex-US deal for 15,000 mt of HMS I/II 80:20 scrap at $365/mt CFR, 13,000 mt of shredded scrap at $385/mt CFR and 3,000 mt of P&S grade scrap at $385/mt CFR. As a result, SteelOrbis’ reference price for ex-US scrap has increased to $361-365/mt CFR.
The positive sentiment in the international scrap market has continued into the current week. As sellers believe their local scrap markets may move up, they are in no rush to share offers with Turkey, while Turkey is still seeking cargoes for January shipment. As of today, December 1, local rebar prices in the Turkish spot market have risen by $1-8/mt compared to November 27, with local 12 mm rebar prices in the spot market now in the range of TRY 29,000-29,900/mt ($569-587/mt) ex-warehouse, depending on the region, with the exchange rate at $1 = TRY 42.46. Official rebar offers for cash payments in the Marmara and Izmir regions, including İçdaş's prices, have settled at $575-600/mt ex-works, while acceptable prices are at $570-585/mt ex-works. As Turkey’s domestic rebar market remains firm, it also provides support for import scrap prices, market sources reported. By the end of last week, the market was discussing billet sales of around 20,000-30,000 mt from Indonesia at $432/mt FOB or close to $475/mt CFR, for February shipment. “Normally this level is not so logical against lower Chinese billet offers, but it makes sense if the tonnage is less than 50,000 mt or if it is a part cargo,” a market source told SteelOrbis.
