Turkey’s import scrap market has continued its uptrend in a new ex-US deal. While this price rise was expected by some market players, others think there may be special shipment terms for such a price level. SteelOrbis observes that some Turkish producers are inclined to show resistance to the ongoing price uptrend. On the other hand, price inquiries in Turkey’s import scrap market have increased, and scrap suppliers believe this is another signal that prices will continue to rise.
SteelOrbis has learned that the ex-US booking in question was done by a Marmara-based producer for 23,000 mt of HMS I/II 80:20 scrap at $367/mt CFR, 5,000 mt of shredded scrap at $387/mt CFR and 2,000 mt of bonus grade scrap at $387/mt CFR. The deal was reportedly closed late last week for shipment in August, according to some sources. The shipment date has not been confirmed by the buyer or seller by the time of publication. While some market players believe this price level was expected for an ex-US cargo, others think that the shipment term may have influenced the higher price level paid for HMS I/II 80:20 scrap. Considering the uptrend of scrap prices, SteelOrbis will revise its ex-US scrap reference price to $367/mt CFR, increasing it by $4.5/mt.
Collection prices in the EU continue to increase. Market players report that prices for delivery to export yards are now at €300/mt and, unless buyers agree to pay such prices, flow is very slow. Sub-collectors also say they are monitoring the situation in Turkey, and point out that European domestic scrap quotations are not falling as initially expected. SteelOrbis observes that European sub-collectors are inclined to wait for higher price levels before selling high tonnages to export yards. A European scrap supplier said about the rising number of price inquiries coming out of Turkey, “When five producers come seeking scrap, the price increases immediately and in each deal. This is what we will see this time too because scrap suppliers have endured lower quotations over the past month. We cannot continue doing that.” A Turkish producer said that the US-based suppliers are aiming for $370-375/mt CFR Turkey, while European suppliers are voicing targets at around $370s/mt CFR. Meanwhile, the current week has started with a price increase for the local Turkish rebar market. For example; Turkish steelmaker Icdas A.S. has revised its longs prices compared to last week against the backdrop of the ongoing currency fluctuations and the positive sentiment in the import scrap segment. The mill has raised its official rebar price on lira basis by TRY 660/mt to TRY 17,590/mt ($590/mt) ex-works. This tendency to increase rebar prices in the local market was observed late last week, with some mills announcing higher levels on Friday, when others announced they had closed their sales until Monday. Turkish rebar traders believe that the Turkish lira-US dollar exchange rate still supports the market and report that their inventory levels have decreased since the most recent wave of purchases was ahead of the holidays at the end of June. A new round of purchases in the local Turkish rebar market is expected when traders replenish their stocks, but the total volumes are not expected to be big. By the end of last week, the billet market in Turkey started showing some signs of optimism, supported by the slight rebound in import scrap prices and some movement in the rebar segment. The latest offers for small and medium tonnages from Russia and Donbass have been reported at $470-475/mt CFR and up to $480/mt CFR for nearer shipment dates within August. Buyers’ bids were at $450/mt FOB early last week, but, according to sources, later on the workable price levels inched up to $460-465/mt CFR for small tonnages.