With last week’s final deals disclosed to the market at the weekend, it is now confirmed that Turkey’s ex-US scrap prices have hit $400/mt CFR.
An Iskenderun-based concluded a deal from the US for a mixture of HMS and P&S grades at $415/mt CFR and shredded at $420/mt CFR. This information indicates that the HMS I/II 80:20 scrap price now stands at $400/mt CFR, up by another $2.5/mt.
Meanwhile a full HMS I/II 75:25 scrap cargo was bought by an Izmir-based Turkish steel producer from Germany with the price standing at $394/mt CFR. Considering the usual gap between ex-US and ex-UK/EU scrap prices, SteelOrbis has increased its ex-UK/EU scrap prices by $3.5/mt to $394-395/mt CFR.
Deep sea scrap prices are expected to maintain their rising trend while the US-Israeli war on Iran continues. The impact of higher energy prices on Turkish mills’ production costs is yet to be seen, but Turkish mills also continue to raise their local rebar prices. The uptrend in the raw material segment is usually limited by Turkish mills’ capacity to sell and pass on the increased costs to their buyers. However, due to the current uncertainties and risks of postponement of previous scrap cargoes, the general view is that Turkish mills will need to buy scrap unless they cut their production rates.
