With several deals done lately, Turkey’s import scrap market has recovered a little. Market sources report Turkish mills are seeking cargoes and prices remain firm as it is already October 27. However, there is no consensus among market players. Some believe the price trend has changed and a further increase may be seen, while others think a further uptrend will not be sustainable.
SteelOrbis has heard that a Marmara-based Turkish producer has concluded an ex-US deal, with HMS I/II 80:20 scrap standing at $357/mt CFR. Another ex-US deal was done by an Izmir-based mill, with HMS I/II 80:20 scrap at $358/mt CFR. Both deals are believed to have been closed yesterday, October 26. These prices are $2-3/mt higher than those in the previous ex-US booking.
An ex-Netherlands transaction was also done by an Izmir-based producer, with the HMS I/II 80:20 scrap price at $352.5/mt CFR and bonus grade scrap at $372.5/mt CFR. This level is $0.5/mt higher than the ex-UK deal SteelOrbis reported yesterday.
Another deal from Croatia was done by the same producer for 25,000 mt of HMS I/II 80:20 scrap at $345/mt CFR.
A seller of ex-US and ex-EU scrap said he thinks this recent rise in scrap prices is surprising, adding, “I am not sure if there is large room for an increase. Prices may hit $360-365/mt CFR Turkey and then stop moving.” A source at a Turkish mill agreed that the increase came as a surprise to them too, commenting, “If the price continues to move up, considering the current rebar levels it means producers are not earning much money.” Meanwhile, a European scrap supplier said scrap flow to export yards has been on the low side for some time and it is not possible to secure tonnages at the current collection prices at €275-280/mt DAP. Turkey needs around seven to eight deep sea scrap cargoes for shipment in the second half of November.