Two deals which have surfaced in Turkey’s import scrap market have signaled stable ex-Europe scrap prices. With the latest prices pushing the lower end up, the general price range for HMS I/II 80:20 scrap has increased by $1/mt.
SteelOrbis has learned that an ex-UK deal was closed by an Izmir-based producer for 18,000 mt of HMS I/II 80:20 scrap and 5,000 mt of bonus grade scrap at $367/mt CFR. The cargo will be shipped in March. The second deal was from the Netherlands to a Marmara-based producer with the HMS I/II 80:20 scrap price standing at $348/mt CFR. SteelOrbis’ reference prices for ex-EU scrap have been adjusted to $347-348/mt CFR, but the average of $347.5/mt CFR recorded yesterday, February 5, has remained stable.
Market sources report that an Iskenderun-based producer has concluded an ex-Baltic deal with the HMS I/II 80:20 scrap price standing at $351/mt CFR, relatively stable as compared to yesterday. This deal was not confirmed by the buyer or the seller at the time of publication, but the price is in line with the expectations for this grade after the recent ex-EU bookings.
The upward movement seen in Germany and Poland has now also been followed by the local Italian scrap market. Market sources report that supply scarcity and the low inventory levels held by mills are the drivers of this upward movement in the European region. A European supplier is reported to be offering at above $350/mt CFR to Turkey for benchmark HMS I/II 80:20 scrap. US-based scrap suppliers are aiming for $360/mt CFR and above in their offers to Turkey for the same grade, with the support from the positive sentiments in their domestic markets. “If we look only at what is going in the scrap segment, the price is showing signs of rising. However, the finished steel market is not really following at the same pace,” a source at one Turkish mill said today, February 6. Domestic rebar prices have indicated a downward correction today. Official rebar offer prices have settled at $560-580/mt ex-works, with Turkish mills starting to give additional discounts since yesterday, with workable levels settling at $560-575/mt ex-works. The snowy weather conditions are also impacting construction sites, market sources report.