In a new ex-US booking disclosed to Turkey’s import scrap market today, February 17, scrap prices for Turkey have indicated a slight increase and finally reached the initially expected levels.
SteelOrbis has learned that an Iskenderun-based producer has concluded an ex-US deal for HMS I/II 80:20 scrap at $507/mt CFR and shredded scrap at $527/mt CFR. This level for HMS I/II 80:20 scrap is $2-3/mt higher than the levels recorded last week.
Ex-US scrap quotations were lower than anticipated in the previous bookings, while this new deal has brought ex-US prices into their more traditional correlation with prices from other regions. SteelOrbis observes that some negotiations are currently being carried out between sellers and buyers, while a couple of deals apart from the ex-US deal above are rumored to have been done this week, though no details have been disclosed by the time of publication. “Turkey needs very few deep sea bookings for March shipments, and so some producers may decide to wait until early March before seeking prompt shipments,” a source stated. “There is no reason for prices to move down with the current collection costs in Europe, and flow to export yards is not strong,” another source said. A German supplier reported that HMS I/II 80:20 scrap prices are standing at €405/mt delivered to the Netherlands, adding that uncut scrap is at €350/mt and above. “Since Turkey seems to be slowing down for now, we have maintained a cautious stance,” the source said. At the same time, some Turkish mills are asking for lower quotations from sellers, SteelOrbis understands, while sellers are resisting such requests. In the meantime, the Chinese government’s warning in relation to speculative activity has negatively impacted the market, while the decreases observed in the Chinese futures markets are mostly considered to be temporary, while demand is expected to increase and support prices starting from late February. Under the current circumstances, SteelOrbis expects prices to remain firm at their current levels.
