Imported scrap prices remain firm in Turkey amid higher freight rates, Kallanish notes.

On Thursday, three deep-sea scrap bookings were heard in the Turkish scrap market.

A southern mill is confirmed to have bought two US-origin cargoes. The first cargo, comprising HMS 1&2 90:10 at $381/tonne and shredded and P&S at $396/t cfr Turkey, is for September shipment. The second cargo, comprising HMS 1&2 95:5 at $381/t and shredded at $396/t cfr, is for October shipment. The buyer is seen to have paid a premium for the September, prompt-shipment cargo.

Although Turkish mills had expected a stronger chance of a downward trend than an upward trend in scrap prices in the near term, higher freight has caused the opposite to happen. The supplier of the US cargo says freight has increased by $10/t recently to $33/t from the US East Coast to Turkey.

The third cargo was booked by another southern mill at $369.5/t for HMS 1&2 80:20 and $395.5/t cfr for shredded. Although the supplier is seen to have achieved a better price compared to its previous sale at $368/t cfr Turkey for HMS 1&2 80:20, despite the depreciation of the euro against the dollar, the higher freight at $21-22/t, depending on the volume, seems to have wiped out this difference.

Considering the exceptions following the fresh bookings and costlier freight, Kallanish has increased its daily price assessment for HMS 1&2 80:20 slightly, by $0.5/t, to $374.5/t cfr Turkey.