Prices in Turkey’s import scrap market are mostly stable and there has been little change in the market fundamentals. After the conclusion of several ex-US scrap transactions, a Turkish mill has concluded a deal from the Baltic region.
The ex-Sweden booking was done by a Marmara-based producer with HMS I/II 80:20 scrap standing at $390/mt CFR and shredded scrap at $410/mt CFR. The deal is reported to have been signed yesterday, July 16. The price indicates a $1.5/mt increase in SteelOrbis’ reference price for Baltic origin scrap, pushing the ex-Baltic benchmark scrap price to levels similar to those recorded in the previous ex-US scrap bookings. Despite the rise in the ex-Baltic price, prices in the deep sea scrap market in Turkey are considered to be stable in the range of $384-390/mt CFR.
Market sources think that Turkey needs another 10-12 deep sea cargoes for August shipment. One seller speaking to SteelOrbis today said, “Turkey will buy around 10 more cargoes and it has a wide timeframe to complete these purchases. So, there is no rush.” SteelOrbis hears that the number of offers to Turkey is also low. Since deep sea scrap prices have remained in a narrow range for a long time, some sellers report they are getting ready for the holidays instead of sharing offers. SteelOrbis believes there is a balance between supply and demand. Slight increases have been seen in dollar-based prices in the local Turkish rebar market, mainly due to the fluctuations observed in the Turkish lira-US dollar exchange rate. Currently, 12 mm rebar spot prices in Turkey have settled at $584-609/mt ex-warehouse, with the workable rebar prices in the Izmir and Marmara regions still at $585-605/mt ex-works.
Meanwhile, short sea scrap prices remain stable in the range of $370-375/mt CFR. Ex-Romania HMS I/II 80:20 scrap deals were closed in the range of $370-373/mt CFR, while an ex-Bulgaria deal for the same grade has been closed at $375/mt CFR Turkey.