The scrap market in Turkey has been discussing information regarding a fresh ex-UK transaction, which indicates a further rise in price and which was closed last Friday. According to sources, a Marmara region-based mill has agreed to pay $425/mt CFR for HMS I/II 80:20. The deal has not been fully confirmed or disproved by the time of publication, but it is widely believed by the market to have in fact been done. “It is somewhat on the higher side that the initially expected workable level at $420/mt CFR or slightly above,” a trader told SteelOrbis.
Prior to this, there were deals for ex-EU scrap in Turkey, though at a lower price level. A supplier from Germany traded HMS I/II 80:20 at $416.5/mt CFR, while an ex-Belgium cargo was sold to the northern part of Turkey at $418/mt CFR.
As a result, the SteelOrbis daily reference price for HMS I/II 80:20 from Europe is now at $420-425/mt CFR, up from $412/mt CFR seen early last week.
The expectations regarding further developments are still positive, taking into account the present demand for import scrap in Turkey and the rather firm markets for the finished steel. In the flats segment, demand is still seen for HRC from various buyers, including those aiming to secure their needs in view of the expected post-earthquake demand. In the rebar market, business activity is moderate for now, but the expected announcements from the government regarding rebuilding works in the Iskenderun region keep market expectations rather high. “Everyone understands there will be big demand for a long of things, not only steel. But when or how it will be covered, and will it really take only three to four months, these are the issues which remain to be seen,” a trader told SteelOrbis. Many in the market expect increases in the capacity utilization rates of Turkish producers, and so the need for import scrap will be higher than usual.
