In a new ex-US booking, Turkey’s deep sea scrap prices have surged above the psychological threshold of $400/mt CFR.
It has been confirmed that a Marmara-based Turkish producer bought the cargo with HMS I/II 80:20 scrap at $404/mt CFR, and with shredded and bonus grades at $424/mt CFR. This cargo will be shipped in December and most market players said there should be a premium in terms of the prices. The tonnages in the cargo have not been confirmed, though there is a rumour that half of it consists of HMS I/II 80:20 scrap. This level for benchmark HMS I/II 80:20 scrap is $12.5/mt higher than the initial expectations. Some players still think it is “a surprise that prices moved at this pace even despite the shorter delivery term.”
A source from a Turkish mill stated, “Although we can see there is premium in this price, the deal can have an impact since the price jumped above $400/mt CFR.” A European scrap supplier said, “The lack of scrap offers took its toll. There are mills seeking scrap faced with silence from the sellers’ side.” Meanwhile, the week in the US after the holidays started positively. Sources are still optimistic that December prices are going to climb. The big question is by how much. Workable domestic rebar prices in Turkey do not support the new level of deep sea scrap quotations. Whether this level can be sustained in the coming bookings from the US remains to be seen.