US East coast export scrap cargo prices to Turkish steelmakers have continued to firm since our last report two weeks ago; recent upticks in ex-China billet offer prices to Turkish steel makers are among the factors that have kept Turkish import scrap offer prices trending strong.
Current ex-China billet offer prices to Turkish steelmakers have been reported at approximately $350-$355/mt CFR. This week’s pricing reflects an approximate $25-$35/mt CFR increase from levels seen two weeks ago, when ex-China billet offer prices to Turkish steelmakers were recorded in the approximate range of $320-$330/mt CFR.
On Wednesday of this week, sources close to SteelOrbis confirmed that one Turkish steelmaker booked a cargo of HMS I/II 80:20 scrap at approximately $246/mt CFR, for May shipment. This price point reflected a $17/mt CFR increase over cargo prices seen two weeks ago, when an ex-US cargo of HMS I/II 80:20 was transacted at $229/mt CFR.
On Thursday, sources indicated that another Turkish steelmaker booked a cargo of ex-US HMS I/II 80:20 scrap at approximately $254/mt CFR. This latest booking reflects a $25/mt CFR price increase over levels seen two weeks ago, and sources say offers are rising by the day.
Month-on-month HMS I/II 80:20 ex-US cargo prices to Turkey have risen by approximately $59/mt CFR.
Current price points for ex-US scrap cargos of HMS I/II 80:20 scrap are approaching price levels seen one year ago; in early April 2015, a cargo of HMS I/II 80:20 scrap was transacted to a Turkish steelmaker at approximately $262-$265/mt CFR.
It should also be noted that the uptrend in US East coast export scrap prices has also forced US domestic mills to raise the prices they are paying for scrap. This month, US East coast HMS scrap prices have settled at approximately $218/mt ($215/gt), which reflects an approximate $41-$46/mt ($40-$45/gt) increase from early March, when East coast HMS scrap prices settled at $173-$177/mt ($170-$175/gt).