Scrap prices are seen continuing their incredible rise in Turkey as steel and raw materials supply disruption from the CIS begins to hit the global market following Russia’s invasion of Ukraine on 24 February.

After exceeding the $600/tonne threshold on Thursday, a new booking from the EU took HMS 1&2 80:20 to above $620/t cfr Turkey on Friday.

An Iskenderun mill was heard concluding a full 80:20 cargo from the EU at $623/t cfr Turkey. A western Turkish mill also bought a Benelux cargo for 7,500t of HMS 80:20, 7,500t shredded and 15,000t bonus at average $625/t cfr.

Earlier, an Adriatic-origin short-sea scrap supplier began deep-sea operations and sold a 40,000t scrap cargo comprising HMS 1&2 80:20, shredded and bonus at $605/t, $625/t and $625/t cfr Turkey respectively on Thursday.

Even short-sea bookings from Romania and Bulgaria are confirmed to have been booked by Turkish mills at $600/t cfr. A small-quantity cargo from Serbia has meanwhile been booked at $595/t cfr.

A scrap supplier tells Kallanish: “There is no base or logic in the market any more. But considering the latest bookings, HMS 1&2 80:20 prices from the EU and the US should not be at below $620/t and $630/t cfr respectively today.”

Domestic scrap prices also increased sharply on Friday. Following their recovery on Thursday, shipbreaking scrap prices rose further to $540/t delivered on Friday.

In the Benelux, dock prices are seen pegged at €450-470/t ($491-513) delivered. Suppliers, however, are seen targeting €500/t levels. The euro, which has dropped below 1.10 per dollar for the first time since May 2020, is providing Benelux exporters with an advantage, meanwhile.