Turkish domestic scrap prices have followed the recent rises seen in imported values. All Turkish mills have increased their domestic scrap buying quotes since last week, Kallanish notes. 

Import prices continued to rise on fresh deals concluded from the Baltic. A Marmara long steel mill bought HMS 1&2 80:20 at $373/tonne cfr Turkey from Estonia, while a northern Turkish mill bought the same grade from Denmark at $377/t cfr on Wednesday.

The spread between the two deals' prices, however, surprised market participants. Although some explain this by the freight difference, which is around $2/t more to the north, and quality premium, almost all market participants think this will lift prices. The next booking from the US is thus expected at around $380/t cfr.

A US supplier is heard offering HMS 1&2 80:20 at exactly this level.

A supplier tells Kallanish: “This booking proves that the upward trend in imported scrap prices is continuing. I believe Turkey will not be able to buy December-shipment cargoes at lower prices. On the contrary, I am expecting to see $380-390/t cfr levels soon."

Another supplier says that approaching the winter and holidays, the already tight supply situation will worsen further.

"Besides tight supply, the strong euro per dollar is keeping prices firm. Domestic suppliers are increasing their price targets each day," says a European supplier. The dollar, which strengthened to 1.04 per €1 last month, stood at 1.067 on Tuesday.

Demand in Turkey's domestic market shows diverging trends, meanwhile. Although it was slower in some regions on Wednesday, it improved in southern Turkey. Domestic rebar offers stood at $565-585/t ex-works on Wednesday.

Turkish shipbreaking scrap prices were mostly at $360/t delivered on Wednesday. The lira was at 28.51 per dollar at business close.

Source: company information