Deep sea prime grade scrap prices in Turkey have continued their uptrend in new ex-US deals today, February 18.
SteelOrbis has learned that a deal has been concluded by a Marmara-based Turkish mill for 25,000 mt of HMS I/II 80:20 scrap at $418/mt CFR. The cargo will be shipped in the first half of March. No further information about this deal was disclosed as the buyer and the seller declined to comment. In the previous transaction, the ex-US HMS I/II 80:20 scrap price was at $410/mt CFR.
Meanwhile, another ex-US booking by an Iskenderun-based mill has reportedly been done with HMS I/II 95:5 and shredded scrap prices at $413/mt CFR and $418/mt CFR, respectively. This deal indicates the level of $408/mt CFR for HMS I/II 80:20. However, this transaction is older compared to the abovementioned one.
Market players state that positive developments such as increasing flat steel prices and widening delivery terms in the same segment or Kardemir’s successful billet and rebar sales which were closed just hours after opening yesterday (approximately 93,000 mt of billet and 52,000 mt of rebar) have provided support for the scrap market. Also, China is expected to return with positive sentiment from its long New Year holiday, supported by the futures market this morning where iron ore prices have indicated a nine percent rise. It is also known that, in the absence of China, Turkey has sold rebar to alternative markets such as Peru, Brazil and Yemen. Although the rebar demand received by Turkish mills is moderate, prices are rising, similar to the trend observed in the local Turkish billet market. Moreover, Turkish mills have started price inquiries again for scrap, SteelOrbis understands, and so new deals are expected in the coming days.