Turkey has accepted prices around $420/mt CFR for premium grade scrap in newly closed bookings. As SteelOrbis mentioned in previous reports, the future trend of Turkey’s import scrap market was expected to be shaped by US-based sellers’ pricing strategies. For now, US-based sellers are giving the impression that they are not willing to reduce their quotations for Turkey. A similar stance is observed in the EU, where slow scrap flow is pushing collection prices up.
SteelOrbis has learned that an Izmir-based Turkish producer has concluded a deal for HMS I/II 80:20 scrap at $419.5/mt CFR and shredded and bonus grade scrap at $439.5/mt CFR. As a result, SteelOrbis’ reference price for ex-US scrap has remained stable.
There is another rumour about an ex-Sweden deal closed by a Marmara-based mill, consisting of HMS I/II 80:20 scrap at $420/mt CFR and shredded and bonus grade scrap $440/mt CFR. Accordingly, SteelOrbis’ ex-Baltic scrap price has also moved sideways.
Turkey’s deep sea scrap bookings for February shipment have reached at least 34 cargoes, seven of which were signed in December. Turkey’s import scrap market is showing signs of stabilization, while Turkish mills are still inclined to buy but are in no rush to do so. Turkish mills report that there is still a considerable number of offers in the market, making it harder for sellers to achieve higher prices for now. Not all market players agree with this statement. However, when purchases for March shipment start, deep sea scrap quotations in Turkey may move up. Collection prices at European export yards are still moving up, with some market sources reporting that prices are now moving towards €345/mt DAP. SteelOrbis has confirmed that a European scrap exporter has shared bids this week at €340/mt DAP. Since some of the scrap cargoes sold to Turkey in January were not already on hand, increased competitiveness may be seen in collection in the EU. One source selling ex-EU and ex-US scrap to Turkey stated, “The current prices may be here to stay for a while, but in the coming term [March shipment] they are expected to increase".