In new import scrap deals done in Turkey, deep sea HMS I/II 80:20 scrap prices have hit $404/mt CFR, with the upward push on deep sea scrap prices persisting despite the announcement of an extension of the ceasefire between the US and Iran.
An ex-Denmark deal has been concluded by a steel producer located in Turkey’s Black Sea region for HMS I/II 80:20 scrap at $404/mt CFR. This deal shows that ex-Baltic scrap prices have moved up by $4/mt, also causing an uptick in ex-US scrap prices by at least $2/mt. SteelOrbis has revised its reference prices to $403-404/mt CFR as the scrap in the cargo in question was of a high grade. Additionally, SteelOrbis’ reference price for ex-US scrap has been adjusted to $404-405/mt CFR after this deal, despite the lack of an actual deal for US scrap.
An older deal, done last Monday, April 13, has also been confirmed this week. An ex-France cargo was bought by a Marmara-based Turkish mill consisting of HMS I/II 85:15 scrap at $402/mt CFR, causing ex-UK/EU HMS I/II 80:20 reference scrap prices to remain at $399-401/mt CFR. At the current levels, the gap between ex-EU and ex-US scrap prices remains at $3-4/mt, which is lower than the usual $5/mt.
Turkey still needs scrap for May and June shipment, while uncertainty has increased due to the fluctuations in oil prices. “Scrap suppliers have a strong hand this month. Prices are moving up and Turkish mills will continue to accept a slow increase in prices,” a source at a mill said. Turkey’s options for import billets are also limited. Chinese billet offers are in the range of $520-525/mt CFR, Russian billets depending on the volume are at $500-515/mt CFR, and Malaysian billets are offered at $535-540/mt CFR. Today, April 22, Kardemir’s billet sales opened at $535-550/mt ex-works, while it sold approximately 60,000 mt. The official offer level for ex-Turkey rebar for May shipment stands at $600-620/mt FOB, up $10/mt over the past week. In general, the latest workable prices in the domestic rebar market are reported at not much higher than $600-605/mt ex-works.
