Although an effort to increase deep sea scrap prices in Turkey was observed among sellers this week, Turkey’s import scrap prices have remained firm and stable.
SteelOrbis has learned that an ex-Netherlands deal was done today, July 19, by a Marmara-based producer with HMS I/II 80:20 scrap standing at $383/mt CFR. Another booking from Germany was closed by another Marmara-based producer at $388/mt CFR for the same grade. As a result, ex-EU scrap prices have moved up by $1,5/mt on average.
Meanwhile, an Iskenderun-based producer has concluded an ex-US deal for 25,000 mt of HMS I/II 90:10 at $395/mt CFR and 5,000 mt of P&S grade scrap at $410/mt CFR, for late August shipment. This deal indicates a $390/mt CFR level for HMS I/II 80:20 scrap. Another ex-US deal was done by a producer in Iskenderun, with HMS I/II 80:20 scrap at $390/mt CFR. A third ex-US scrap booking was done by another Iskenderun-based producer for 10,000 mt of HMS I/II 90:10 scrap at $392/mt CFR, and for 10,000 mt of shredded and 10,000 mt of bonus grade scrap both at $410/mt CFR. As a result, ex-US HMS I/II 80:20 scrap prices remain at $390/mt CFR Turkey.
Towards the end of the week, US-based suppliers started to voice their intentions to increase their offer prices to Turkey. SteelOrbis has heard that they are citing the holidays in Europe, and, with the absence of their competitors, they may ask for higher prices in the coming week. The local US scrap market is also in a positive mood, with August settlement prices expected to be sideways with upward potential, market sources report. Both in the EU and the US, scrap collectors report that flow to yards is slow. The latest collection prices in the EU were in the range of €320-330/mt DAP, a source said today, July 19. But the European scrap market is slowly entering the holiday period. For now, there is no risk of a surprise price drop in Turkey’s import scrap market. Import scrap prices in Turkey are expected to remain strong in the coming weeks, also lacking support for a significant price increase.
