Following Turkish mills’ resumption of scrap import purchases, prices in the deep sea scrap segment have been increasing at a rapid pace. Turkish mills have already done export sales and the demand for their products they are receiving from various regions is supporting the price rise in the international scrap market. Sentiment in Turkey’s import scrap market is very good and prices are expected to move up further in the coming deals.
SteelOrbis has learned that an ex-UK deal has been done by an Iskenderun-based mill, with HMS I/II 80:20 scrap standing at $355/mt CFR. No further details have been shared about this transaction at the time of publication. While the parties involved have avoided making comments on the deal, market players state that it has in fact been done. This level is $26/mt higher than the previous ex-Belgium deal closed at $329/mt CFR.
There is another rumour about the same seller concluding a sale to an Izmir-based producer and that the booking was closed at the same level, i.e., $355/mt CFR.
An US scrap supplier has reported that the sellers’ idea right now for ex-East Coast HMS I/II 80:20 scrap is at around $380/mt CFR. “I think Turkish mills would accept the $360s/mt CFR levels instantly from the EU,” the seller added. Another seller stated that the workable levels for ex-US scrap are in the range of $380-400/mt CFR, which signals for $370s/mt CFR for ex-EU HMS I/II 80:20. “We are hearing that Turkey is receiving finished steel demand from Latin America, and some sales have been done there. This is supporting the positive sentiment,” a source commented. Another source said, “There is no scrap seller right now in the market. All are expecting prices to increase further in the coming days.” The uptrend of the deep sea scrap prices is also advantageous for the sellers who have high inventory levels at high costs. Additionally, citing costs, Russian billet exporters are now out of the Turkish market, and so the negative impact of their low-priced billet has come to a halt. In this context, the realization of positive price expectations will depend on the sellers. If one of them has a stressed cargo or is forced to sell due to financial pressure, the first bookings may be closed at lower-than-anticipated levels.
Quotations in the short sea scrap segment are also moving up. A producer close to the Marmara region reported that there have been bookings done in the range of $315-325/mt CFR this week, though one seller stated that these levels are not acceptable right now. “The sellers in the Black Sea region have taken a step back. they are waiting for higher levels,” a trader in Turkey reported, adding, “Sellers’ desired levels for HMS I/II 80:20 scrap are in the range of $350-360/mt CFR”. This information is supported by an ex-Israel HMS I/II 75:25 scrap sale to Turkey’s Iskenderun region at $324/mt CIF.