As Turkey’s deep sea scrap prices remain firm, ex-Europe scrap prices for Turkey have settled in the range of $418-420/mt CFR, with little upward support.
SteelOrbis has heard that an ex-Germany scrap booking was done by a Marmara-based Turkish producer on Friday, January 12, with HMS I/II 80:20 scrap standing at $420/mt CFR, and shredded and bonus at $445/mt CFR. The cargo will be shipped in February. The previous deal from Belgium was closed at $418/mt CFR. The average European scrap prices have increased by a mere $1/mt.
The collection prices of some export yards in Europe have increased week on week. An Amsterdam-based exporter has shared bids for HMS I/II 80:20 scrap at €335/mt DAP, while a Netherlands-based exporter has increased its bids to €340/mt DAP. A sale of 8,000 mt of HMS I/II 80:20 scrap from Germany to the Netherlands has been confirmed by a sub-collector, who also reported that workable collection prices in the EU should be at around €340-345/mt DAP for them to make a profit on their sales. Meanwhile, US-based port delivery prices have remained stable this week. The current appetite of Turkish mills for scrap is on the low side as their domestic rebar demand is still on the low side. A Turkish trader said that steel producers are keeping only half of the tonnage they usually have in their inventories. Since winter conditions are expected to prevail in Turkey for at least another month, no recovery is expected on the construction side. The representative of a Turkish mill commented, “The long steel performance is not supporting current scrap prices, though some producers which have the advantage of a wider product range may be able to compensate for the losses resulting from rebar sales.” For now, Turkey’s import scrap market is expected remain firm and move sideways.