Turkey’s import scrap prices have moved up sharply in a series of new deals disclosed to the market late yesterday and today, January 5.
SteelOrbis has learned that an ex-Netherlands deal was closed by a Marmara-based mill on January 4, for HMS I/II 80:20 scrap at $409/mt CFR, and shredded and bonus grades at $429/mt CFR. The total tonnage in the cargo is 40,000 mt and it will be shipped in February.
On the same day, an ex-Hamburg cargo is believed to have been bought by the same producer with HMS I/II 75:25 scrap standing at $412.5/mt CFR, for February shipment. This information has not been confirmed at the time of publication.
Prior to these bookings, another deal from Germany was closed by an Izmir-based producer on January 3 for 22,000mt of HMS I/II 80:20 scrap at $408/mt CFR and 3,000 mt of bonus and busheling at $428/mt CFR, which is now considered irrelevant due to the newer deals.
An ex-Denmark transaction was also done by a Black Sea-based steelmaker for HMS I/II 90:10 scrap at $422/mt CFR, again for February shipment. This information signals for $417-419/mt CFR for ex-Baltic HMS I/II 80:20 scrap.
Another ex-Baltic deal by an Iskenderun-based steelmaker has been closed at 31,000 mt of $413/mt CFR for HMS I/II 80:20 and 7,000 mt of $433/mt CFR for bonus grade scrap. The deal was done today, January 5.
An ex-US scrap deal was closed by an Iskenderun-based producer for 22,000 mt of HMS I/II 90:10 scrap at $426/mt CFR and 5,000 mt of P&S grade scrap at $441/mt CFR, for February shipment. This deal signals a price of $420-422/mt CFR for ex-US HMS I/II 80:20 scrap.
Due to the rapid increase in deep sea prices, the number of sellers in the market has also moved up. However, SteelOrbis hears that sellers are not experiencing any difficulties finding interested buyers as negotiations continue. A source commented that the ex-EU HMS I/II 80:20 offers are now at $410-415/mt CFR, with better grades in the range of $415-420/mt CFR: for US origin HMS I/II 90:10 offers are higher than $420s/mt CFR. As Turkey’s ongoing need for deep sea scrap seems to be supporting the uptrend for another while, the next level to be tested will be around $430s/mt CFR. “I do not see a risk for February shipments,” a seller said, “but for March we shall wait and see.” Turkey needs at least 15 more deep sea cargoes for February shipments.
Accordingly, the workable levels for HMS I/II 80:20 scrap from Romania and Bulgaria have risen to $395-400/mt CFR.
