Both local and import scrap prices in Turkey have registered a higher uptrend than expected over the last week. In line with the rising demand in the main scrap export markets, scrap demand from the Turkish mills has also continued to be lively. Also, as demand in the flat steel markets has improved and with flat steel producers showing an interest in scrap, scrap prices are also being pushed in an upward direction. Although demand for rebar has not improved significantly, scrap price levels are preventing rebar prices from falling, causing rebar price levels to stand at around $480mt FOB in Turkey.
While ex-US HMS I/II 80:20 scrap was at $265/mt CFR Turkey early last week, the price level in the latest deal heard is at $280/mt CFR. In the US domestic scrap market, after the price increase of $80/lt in industrial scrap, it is expected that other ex-US scrap offers will likely increase by similar margins. Thus, it is expected that this week ex-US scrap offers for HMS I/II 80:20 will be at around $290/mt CFR, that shredded scrap offers will be at around $295/mt CFR, with P&S scrap offers at around $300/mt CFR.
Market players in Turkey have also been surprised by the price level of ex-Black Sea A3 grade scrap. While early last week scrap suppliers sold this material at around $260/mt CFR, they expressed regret over these sales when they saw prices increasing to around $280/mt CFR towards the end of last week. Scrap collection price levels in Romania have increased to $240/mt. Meanwhile, ex-Black Sea offers for scrap in Turkey have started this week at around the price level of $285/mt CFR.
Over 1,000,000 mt of scrap are expected to be bought in Turkey in the months of June and July. In these days when cargoes for August shipment have started to be mentioned, the scrap markets are continuing to show lively levels of activity.