Posted on 19 Feb 2020
Scrap prices have continued to rise this week after they rebounded last week following Turkish mills’ resumption of deep-sea purchases.
After reaching $276/tonne cfr Turkey over last weekend, scrap prices have increased further on a fresh US-origin deal concluded by a Turkish mill. An İskenderun-based steel producer bought a cargo consisting of 20,000 tonnes of HMS 90:10 at $282.5/t, 5,000t of shredded at $285/t and 5,000t of bonus at $290/t cfr. It is for shipment in the second half of March.
Turkish mill demand for both deep-sea and short-sea scrap continues this week. US suppliers are offering at $282-285/t cfr for HMS 1&2 80:20, while a UK supplier is quoting $280/t cfr and EU suppliers are offering at above $275/t cfr for the same grade.
Short-sea scrap prices stood at $267/t cfr for Bulgaria-origin A3 in a deal concluded on Monday. Current short-sea offers stand at $270/t cfr and $273-275/t cfr for Romania- and Russia- origin A3 respectively.
An EU scrap supplier tells Kallanish: “We receive price inquiries from Turkish mills. I think short-sea demand is a bit stronger compared to deep-sea.”
“Prices are increasing in a healthy way – they have not shown big jumps. I guess we will see $285/t cfr by the end of the week,” says a scrap agent.
“I am not sure where prices will get to,” says a Turkish steel producer. “Under current conditions it is too hard to make a prediction; there are many unknowns.”
Turkish mills have further increased rebar quotes following the hikes seen in scrap prices. Rebar offers stood mostly at above $440/t fob actual weight on Tuesday.
Source:Kallanish
