Turkey’s deep sea scrap prices have started to move up after the Chinese market witnessed one of its sharpest price hikes in over a year. The Chinese steel market has surged after a fresh package of stimulus measures to support the real estate market was announced by the Chinese government on Sunday, following the easing of monetary policy last week. The positive news from China quickly impacted the Turkish steel and scrap markets, with scrap suppliers leading the way, saying they are now targeting higher price levels for the month ahead.
SteelOrbis has heard that an Izmir-based producer has concluded an ex-UK booking for HMS I/II 80:20 scrap at $369/mt CFR, for shipment in November. The details have not been confirmed by the seller or the buyer by the time of publication, but several market players have confirmed that the deal was in fact done. Although the new price level in the deal has not been confirmed by the parties in question, several sources surveyed by SteelOrbis believe this price is here to stay for now. As a result, the SteelOrbis ex-Europe HMS I/I 80:20 scrap reference price for Turkey has increased by $10/mt.
“Now that China is carrying its own weight, or at least is giving the signals of it, we are seeing the impact spread to all products, not just scrap,” an European scrap supplier said today, October 1, adding, “Even higher levels for European scrap seem possible to us in the coming days.” While some players agree with this positive sentiment, others think it is too early to say whether this sentiment is sustainable. For example, some players think the recent price surge observed in China is “exaggerated.” According to one source, “We do not know if China will return from its holiday with the same strength.” The National Day Holiday in China will continue for a week (October 1-7). As of yesterday, September 30, Turkey’s rebar rebar prices exceeded $600/mt ex-warehouse. The price increase is also explained by the ongoing currency fluctuations and the relatively better demand from post-earthquake construction projects in the Iskenderun region, as compared to Thursday, September 26. Today, Turkish mills have continued to raise their domestic rebar prices, with their price range varying at $610-625/mt ex-works in the Marmara and Izmir regions.