As anticipated by SteelOrbis, Turkey’s import scrap market has moved up. The sentiment in Turkey has recovered quickly in the new month as Turkish mills’ interest in scrap has gained momentum.
SteelOrbis has learned that an Iskenderun-based producer has concluded a deal from the US for HMS I/II 80:20 scrap at $338/mt CFR and shredded scrap at $358/mt CFR, with the price rising by $9.5/mt in a single leap.
Market sources report that US suppliers were aiming for $340/mt CFR and above before, but could not convince buyers. SteelOrbis observes that Turkish mills want to see local US settled scrap prices as well as developments in the EU region. Producers are also watching steel sales closely. Kardemir opened its rebar sales today, at TRY 21,000/mt ($544/mt), excluding VAT, succeeding in selling around 33,000-34,000 mt due to its advantageous payment terms, while its price indicated an increase of TRY 300/mt ($4/mt) compared to its previous price list dated Friday, April 25. Kardemir closed its sales within a couple of hours. While Turkish mills are trying to increase their rebar prices, the prices have barely moved above $550/mt ex-works. “Unless we see a further recovery in the local rebar market, expecting higher deep sea scrap prices makes no sense,” a source commented. Another agreed and said, “There are cheap billets arriving at ports, while the rebar price is not moving up. Turkish mills may buy deep sea scrap cargoes this month but the tonnage may remain lower than usual.” As a result, SteelOrbis believes that, for now, deep sea scrap prices may remain in the range of $330-338/mt CFR.