Turkish scrap import prices shot up by $10/tonne on new deals reported over the weekend, as mills moved to secure February-shipment material, market participants tell Kallanish. Scrap is now at its highest level so far in 2017 and the costliest it has been since September 2014.

A deal reported from North America was for 13,500 tonnes of shredded and 16,500t of bonus at an average of $370/t cfr Turkey for loading on 5 February. This gives an indicative price for HMS 1&2 80:20 scrap of $362.5/t, beating the previous three-year high of $358/t seen in mid-August. A second cargo was heard booked from the Benelux for 20,000t of HMS 75:25, 15,000t of P&S and 5,000t of new cuttings for an average of $357/t, giving an indicative price for HMS 80:20 of $352/t.

Last week US and Baltic merchants had raised their offers for HMS 80:20 to $365/t and $360/t respectively cfr Turkey after Turkish mills booked 21 cargoes for January shipment at around $350-355/t. Most Turkish mills have increased rebar export offers to $570/t fob Turkey for March shipment.

The scrap rally is being supported by curtailed availability during the winter season and a tight billet market, which has seen quotes for the semi shoot up to $515/t fob Black Sea, according to sources.