As Turkish mills try to find available cargoes for February shipment, they have been forced to accept gradual increases in prices.
SteelOrbis has learned that an ex-UK booking was made yesterday, January 13, by a Marmara-based Turkish steel producer with the HMS I/II 80:20 scrap price standing at $368/mt CFR and bonus grade scrap at $391/mt CFR. As a result, SteelOrbis has revised its reference price for ex-UK/EU scrap up by $2/mt to $368-369/mt CFR.
Positive sentiment persists in the scrap market persists. Sellers are aiming for higher levels this week, as indicated in SteelOrbis’ previous reports, while Turkish mills still need to conclude a high number of deals for February shipment. German sub-collectors report that scrap flow to their yards is quite slow, causing them to maintain a cautious towards the current DAP-based bids from exporters. Despite the recent increases in exporters’ bids, one German sub-collector said they will probably wait for higher bids of around €280/mt DAP to sell more of their scrap inventories. More available cargoes could be offered from the US West Coast to Turkey, SteelOrbis understands, though some sources think that the longer delivery term for an ex-West Coast scrap cargo compared to the East Coast may prevent a price increase from that region. On the US East Coast, sellers are aiming higher than $375/mt CFR Turkey. Collection prices at US-based export yards have also increased this week against the backdrop of cold weather conditions. While sentiments in the scrap market remain strong, the steel segment in Turkey has failed to improve, which continues to be an obstacle to significant increases in scrap prices. Currently, ex-Turkey rebar prices are still at $565-575/mt FOB for February shipment, stable week on week. In the domestic rebar market, mills’ official offers are at $560-585/mt ex-works, stable over the past week. The lower end of the range is heard in the Iskenderun region, up by around $5/mt, while the workable prices in the region have improved to around $560/mt ex-works.