Turkey: Imported Scrap Prices Jump in Recent Deals

SteelMint learned in recent conversation with market participants that Turkey-based steel mills have recently booked cargoes at increased prices amid higher collection costs. Worsening winter conditions led suppliers to raise offer levels by USD 6-8/MT against last weeks' report on tight supply. On the other hand, scrap prices also might have climbed up due to an urgent need from the steel mills amid limited inventories in hand, in resumed bookings after a short break.

In the recent trade, a US seller sold 50,000 MT cargo to the Marmara based steelmaker comprising 17,000-20,000 MT HMS 1&2 (90:10), 5,000 MT P&S and remaining Shredded at an average price of USD 294/MT, CFR Turkey.

In another deal, second Marmara region based steelmaker booked 40,000 MT cargo from a Benelux recycler comprising 17,000 MT HMS 1&2 (75:25) at USD 270/MT, 13,000 MT Shredded at USD 280/MT, 6,000 MT P&S and 4,000 MT Busheling at USD 290/MT, total at an average price of USD 286.25/MT, CFR Turkey. This cargo is scheduled for 2nd half February shipment.

According to SteelMint's price assessment, US origin HMS (80:20) scrap moved up to USD 288/MT, CFR Turkey as against USD 281.5/MT, CFR in the last report. While HMS 1&2 (80:20) of Europe origin is still at around USD 275-276/MT, CFR. A premium for US material over Northern European scrap stands at above USD 10/MT.

Earlier to this, there was a rumour in the market that cargo was booked last Friday comprising HMS 80:20 at USD 282/MT and Shredded at USD 287/MT, CFR.

Turkey rebar prices fall USD 5-10/MT on W-o-W basis - Turkey rebar export offers continue downtrend amid dull demand. In recent trades prices fell in the range USD 435-445/MT, FoB Turkey. Surprisingly rising scrap prices but no improvement in finish steel demand put steel mills under pressure.