Turkish mills were forced to increase their deep sea scrap purchase prices late last week amid the ongoing lack of offers which has raised concerns over scrap availability.
An Iskenderun-based Turkish steelmaker is reported to have concluded three consecutive ex-US scrap bookings, with HMS I/II 80:20 scrap prices at $360-361/mt CFR. One of the cargoes reported by market sources consisted entirely of shredded scrap at $380/mt CFR, while one had HMS I/II 90:10 scrap at $365/mt CFR. As a result, ex-US HMS I/II 80:20 scrap prices increased by $5/mt late last week.
Meanwhile, a Black Sea-based producer concluded an ex-UK deal late Friday, November 21, for HMS I/II 80:20 scrap at $354/mt CFR, with bonus grade scrap at $374/mt CFR. Following this deal, SteelOrbis’ reference prices for ex-UK/EU scrap have been raised by $4/mt to $354-357/mt CFR, depending on the supplier region.
Market sources report that scrap demand in Turkey increased quickly late last week, but was faced with an insufficient number of willing suppliers. As Turkey continues to buy ex-US scrap, European scrap suppliers are also pushing for higher levels with each sale. The euro-US dollar exchange rate is still at 1.1548, remaining relatively stable, but European scrap exporters’ collection costs are also stable in the range of €255-260/mt DAP. Initial sentiment regarding local US scrap prices for the December buy-cycle is changing from stable to potential for a rise. It is also observed that Turkish mills are trying to buy more domestic scrap by increasing their local scrap procurement prices, especially with the ship scrap segment in Izmir attracting attention with some mills accepting to pay as high as $363/mt CPT. For now, Turkish steelmakers are still finding room to reflect the higher scrap prices in the rebar market. Today, November 24, producers’ workable local rebar prices are in the range of $560-585/mt ex-works, depending on the region. While rebar demand in the local market continues to be observed, market sources report that it is slowing down as a lot of restocking has been done and also due to the approach of the end of the month.
