Turkish Mills Book Scrap Cargoes from Baltic Sea Region at Stable Prices

Scrap importers in Turkey have continued booking more scrap for October shipments at almost range bound prices. Since last 1-2 weeks importers keep procuring material mostly from Europe and Baltic origin as offers from USA suppliers remain limited amid tight supply. Also, USA recyclers remained on the sidelines with price expectations above the current Turkish levels amid strong demand from Asian markets.

Since last two weeks period, Turkish scrap prices have remained range bound in the tight range of USD 319-325/MT, CFR. Recent deals concluded in the market also have followed same trend as prices haven’t moved considerably and overall price level was described as largely stable.

According to SteelMint’s price assessment, USA origin HMS (80:20) scrap stands steady at around USD 324-325/MT, CFR Turkey. While HMS 1&2 (80:20) for Baltic origin heard at USD 321-323/MT, CFR. Premium of USA HMS 1&2 (80:20) over European origin narrows down to USD 6-8/MT.

In the recent deal, 30,000 MT cargo was sold to an Izmir-based steelmaker comprising 25,000 MT HMS 1&2 (80:20) at USD 321/MT and 5,000 MT Bonus at USD 331/MT, CFR Turkey out of Baltic origin.

In another deal concluded, a steelmaker in Marmara region booked 25,000 MT cargo comprising 20,000 MT of HMS 1&2 (80:20) at USD 320/MT and 5000 MT of Bonus at USD 330/MT, CFR Turkey.

The same Marmara based steelmaker heard to have bought a cargo with HMS 1&2 (80:20) at USD 323/MT, Shredded at USD 328/MT and Bonus at USD 333/MT, CFR from another Baltic merchant. However, the deal could not be confirmed by the time of publication of this article.

Amid firm demand for scrap in the global market, prices are likely to remain firm in the short term in Turkey while even the slight upward correction could be observed in the near future. However, the direction of market depends mostly on movements in the Turkish rebar market and currency dynamics.

Rebar export prices remain to lower side – After witnessing slightly improved demand in mid Sept Turkey rebar prices have turned down marginally on dull sentiments again, prices assessed in the range of USD 510-515/MT, FoB Turkey, down USD 5-10/MT W-o-W.