As anticipated by SteelOrbis, the large gap between ex-US and ex-EU prices in Turkey’s import scrap market could not be sustained and European scrap prices have increased quickly.
An ex-Belgium scrap booking has been closed by an Iskenderun-based producer for 25,000 mt of HMS I/II 80:20 scrap and 15,000 mt of shredded and bonus grade scrap at the average price level of $349/mt CFR. According to the details, this deal signals that the HMS I/II 80:20 scrap price is now at $341.5/mt CFR, $8.5/mt higher than the previous deal. Following the rise in the ex-EU price, SteelOrbis’ reference price for ex-Baltic HMS I/II 80:20 scrap has been revised to $345/mt CFR.
The positive sentiment in Turkey’s import scrap market has strengthened in the most recent deep sea scrap bookings. Turkish mills have a long way to go to complete their purchases for January shipment, and so some market sources have already started to expect ex-US HMS I/II 80:20 scrap prices to move above $350s/mt CFR. Being a short month, December supports sellers’ sentiments given the limited trading time and the cold weather conditions. Meanwhile, some sources at Turkish mills point to the recovery of domestic rebar prices, with 12 mm rebar spot prices in Turkey settling at TRY 23,800-24,200/mt or $569-578/mt ex-warehouse, depending on the region. The official rebar prices in the Marmara and Izmir regions vary at $570-580/mt ex-works, including Icdas A.S.’s prices, while the workable rebar prices in these regions vary at $565-575/mt ex-works, for cash payment only. There are also rumors of high tonnages changing hands in the local rebar market, providing support for the upward trends of the steel and scrap segments.