Several deals have been disclosed in Turkey’s import scrap market late yesterday and today, December 6, from the US and the EU.
SteelOrbis has learned that an ex-US scrap booking was done by an Izmir-based producer on Tuesday, January 3, for HMS I/II 80:20 scrap at $417/mt CFR. The prices of better grades are $20/mt higher than the benchmark grade price.
This deal was followed by another ex-US booking done by an Iskenderun-based producer, again with HMS I/II 80:20 scrap at $417/mt CFR. The most recent transaction was signalled for US origin HMS I/II 80:20 scrap at $421-423/mt CFR. US suppliers are heard to be asking around $425/mt CFR as of today.
Meanwhile, two ex-EU deals have surfaced in the market. One deal was done by a mill in Izmir, with HMS I/II 80:20 scrap standing at $414/mt CFR and the second by a Marmara-based producer at $410/mt CFR. These levels are in the range of SteelOrbis’ ex-EU scrap reference price range at $409-415/mt CFR.
After concluding a high number of deals within a mere three days, Turkey’s import scrap market has surged up higher than estimated. This quick uptrend has met with some suspicion from market players, with some thinking it cannot be sustained. “The market may need some time to digest this recent increase. At the end, it will all depend on what finished steel does,” a seller commented. Another market player said he feels like the mood has changed in Turkey, “This rally was quick. Today I feel like Turkish mills have taken a step back to evaluate the situation.” Some are more positive, a major scrap supplier statedi “Up to now, the shortage of scrap pushed prices up. From now on demand will.” The collection price in the EU are also increasing. Some players stated that the recent cargoes sold to Turkey are not ready in hand. European scrap export yards are bidding €350/mt DAP Antwerp for HMS I/II 75:25 scrap, SteelOrbis hears. While the local US scrap market has not yet opened, the first news indicates that the initial expectations will be realized. An Ohio-based producer has announced January scrap purchase prices. According to a reliable source, the mill is out at up $60/gt on busheling, up $30/gt on shredded scrap, and up $30/gt on plate and structural (P&S) scrap. Meanwhile, the lack of Turkish steel exports is concerning. SteelOrbis earlier today reported that renewing licenses for inward processing may be difficult in the coming period amid the lack of exports. “This would impact Turkey’s ability to import billets,” a source reported.
Although there is no new confirmed short sea deal, SteelOrbis has increased its reference prices for HMS I/II 80:20 scrap from Romania and Bulgaria to $400-405/mt CFR. While Turkish mills have already started to look for short sea scrap to fill their gaps, the number of offers coming from Black Sea is on the low end. “Some short sea sellers are aiming for $410/mt CFR and above,” a source commented. The gap between short and deep sea scrap is set to narrow in the near term, most believe.
