Turkey has bought ex-Baltic scrap at increased prices in several deals concluded this week. Ex-Baltic prices are merely following the deep sea scrap price trend as Turkey seeks to complete its purchases for May shipments. The lively demand may lead to a further but slight price increase for purchases for May shipment.
An ex-Sweden booking was done by a Marmara-based producer yesterday, April 24, for HMS I/II 80:20 scrap at $385.5/mt CFR. After this deal, the ex-Baltic scrap reference price has increased by $3.5/mt.
SteelOrbis has learned that an Iskenderun-based producer bought an ex-EU scrap cargo consisting of HMS I/II 80:20 scrap at $380.5/mt CFR. This level represents the lower end of European scrap prices which stand in the range of $380.5-383/mt CFR.
Meanwhile, an Amsterdam-based export yard is currently paying €310/mt DAP for scrap collection, while three other export yards located in Belgium and Amsterdam are paying higher levels in the range of €315-320/mt DAP. A Germany-based sub-collector contacted today, April 25, mentioned that their own collection prices for uncut scrap material have never dropped below €260-270/mt delivered. “With the €15/mt cutting cost and approximately €20/mt inland freight, there is no room for us to reduce our prices once again. Also, demand received from European mills is increasing in terms of tonnages, though no recovery on the price side is seen yet,” the source added. Collection prices in the Baltic segment are at around €325-330/mt DAP for HMS I scrap. Market sources report that Germany is paying higher levels for this grade, with two separate sources indicating prices for HMS I in Germany at €355-360/mt delivered to mill. Collection prices supported by the ongoing slow scrap flow in the EU mean that export yards will try to keep their offer prices to Turkey firm and even try to find higher levels in the coming period. Meanwhile, rebar spot prices in Turkey have remained stable at $589-612/mt ex-warehouse, depending on the region. The general official rebar price range in the Marmara and Izmir regions varies at $590-610/mt ex-works, while the workable rebar prices seem close to the lower end. Finally, Turkey’s central bank has kept interest rates stable at 50 percent in its decision announced today.