Scrap metal suppliers expect higher prices in Turkey

Post-holiday target prices for scrap metal suppliers are even higher, although there is little supply in the Turkish scrap market due to the ongoing holidays in some supplier countries.

The latest booking was confirmed from the EU at an average price of $402 per ton for 30,000 tons HMS 1&2 80:20, 5,000 tons shredded and 5,000 tons P&S on 29 December.

Although Turkish factories are interested in scrap this week, there are few offers for imported scrap. This supports the higher price expectations of most market participants.

A supplier from Benelux explains: “Many factories are interested in scrap, but there are no offers on the market. I wouldn't be surprised if I see $410/t CFR this week. Today, no plant can buy scrap below $400/t CFR.”

Another supplier says: “The main issue is the supply of scrap metal. Even the coasters don't offer any materials. US and European suppliers are not expected to offer HMS 1 and 2 80:20 below $420/t and $410/t, respectively. A discount of $5/tonne may apply today, but I expect US prices to reach $420/tonne CFR in the coming period.”

The plant says: “In addition to the lack of supply, suppliers are finding support in the recent rise in rebar prices and lower electricity prices. While there aren't many offers on the market, I expect them to offer HMS 1 and 2 80:20 at over $410/t.

In the meantime, Benelux exporters seem to be back from holiday with dock prices up by 10-15 EUR/t (10.56-15.84 USD/t). Most of them are trying to get the HMS grade at a price of 325 euros per tonne with delivery on Tuesday.

Meanwhile, Turkish factories, which need to buy scrap, have further increased the purchase prices for scrap in the domestic market and in ship breaking.

While rebar export demand remains weak, buoyant domestic demand in Turkey, which eased on Monday, stalled on Tuesday. Mills' bids were generally $700-715/t on a factory-delivery basis, depending on the region.