While Turkey’s import scrap market continues to move up, a Turkish mill has accepted higher than anticipated levels for an ex-US cargo. This deal is believed to provide support for a larger increase in the market as Turkish mills continue their transactions for March shipments.
The deal in question was closed by an Iskenderun-based producer for 17,000 mt of HMS I/II 80:20 scrap at $349/mt CFR, 11,000 mt of shredded scrap at $369/mt CFR and 2,000 mt of P&S scrap at $369/mt CFR. The deal was closed late on January 29, resulting in another increase in ex-US scrap prices, by $6.5/mt CFR.
Meanwhile, another Iskenderun-based producer had concluded an ex-Netherlands deal on the previous day, January 28, for HMS I/II 80:20 scrap at $337/mt CFR. This price level is now considered old, since both recent bookings from the UK and the US are signaling at least $340/mt CFR for European HMS I/II 80:20 scrap. SteelOrbis has revised its reference price for ex-EU HMS I/II 80:20 scrap to $340-342/mt CFR, raising it by $1.5-3.5/mt.
While some sources at Turkish mills question the most recent price increase, others think it provides support for an upward trend and that now no seller will accept lower levels. “They [scrap suppliers] had already taken a step back. Now with this increase, I believe no European would accept lower than $340/mt CFR and may even push for higher levels,” a buyer commented. The lack of acceleration in the EU steel market is causing a standstill in the region in terms of scrap and steel prices. “Scrap demand is not recovering in the local market. The upward push is coming from exports not from the local recovery,” a European scrap market player reported. The mood in the local Turkish rebar market is also more positive - not only have inquiries started to come from construction companies, but the billet and profile segments are also lively. “Only the flat steel segment raises concerns, with prices on the low side for now,” a source at one steel mill commented. Currently, ex-Turkey rebar prices still vary at $550-560/mt FOB for February shipments, unchanged over the past week. There are rumors of a sale of a lot of 8,000-10,000 mt of rebar to Syria at $550-555/mt FOB earlier this week, while another rebar sale is also rumored to Syria at a similar price level. However, the final details have not been confirmed by the time of publication. As mentioned by SteelOrbis yesterday, a slight price increase was announced by Turkish mills for domestic rebar effective from today, January 30, by around $5/mt.
