In new deals signed by Turkish mills, deep sea scrap prices in Turkey are moving up. This was anticipated by SteelOrbis, since there has been lively demand in Turkey since the beginning of the current week and so it has not come as a surprise. However, the extent of the rise remains to be seen. Turkish mills have started to increase their domestic rebar offers amid the positive sentiment in the scrap market, though it is too early to say whether the new levels will be accepted by traders. While Turkey is trying to secure some scrap tonnages ahead of the Feast of Sacrifice holiday which starts on June 16, they are also trying to fill the gaps in their inventories. Therefore, the lively demand for scrap is expected to continue in the coming week. However, SteelOrbis hears that the number of offers shared in the deep sea scrap market is on the low side since sellers now think deep sea scrap prices are going to move up further.
SteelOrbis has learned that an ex-Germany deal has been done by a Marmara-based producer, with HMS I/II 80:20 scrap standing at $381.5/mt CFR. The same buyer has concluded an ex-France booking for 22,000 mt of HMS I/II 80:20 scrap at $378/mt CFR, 3,000 mt of bonus grade scrap at $398/mt CFR and 2,000 mt of shredded scrap at $398/mt CFR. This cargo will be shipped in the first half of July. Also, a report of a third deal by this buyer is circulating in the market, with HMS I/II 80:20 scrap at $379/mt CFR. As a result, ex-EU scrap prices have increased by $6/mt to $379-381.5/mt CFR.
Meanwhile, an Iskenderun-based producer has concluded a deal from the Baltic region for HMS I/II 80:20 scrap at $382/mt CFR and shredded and bonus grades at $402/mt CFR. This cargo will be shipped in late June. The same seller has concluded another contract with an Izmir-based producer, market sources report, with HMS I/II 80:20 scrap at $382/mt CFR and shredded and bonus grades at $402/mt CFR. . Ex-Baltic scrap prices have increased by $3/mt with this deal. Therefore, SteelOrbis will revise its ex-US scrap price to $385/mt CFR as an indication, despite the lack of an actual booking from the US.
While Turkish mills’ offers for Romanian HMS I/II 80:20 scrap are at around $350-360/mt CFR, market sources report that short sea scrap sellers are also unwilling to conclude sales in this range. And the next workable levels are expected to be at $365-370/mt CFR, according to market sources.