Turkish mills pay premium for prompt-shipment scrap cargoes

Scrap prices in Turkey have continued to rise on fresh offers. However, the number of quotes is limited to certain prompt-shipment cargoes.

A few fresh bookings were heard on Thursday.

A long steel mill is heard to have bought US-origin HMS 1&2 80:20 at $486/tonne and shredded at $506/t cfr Turkey on Tuesday for March shipment. Although there are rumours that this was concluded last week, the supplier confirms it was on Tuesday. The same producer sold UK-origin HMS 1&2 80:20 at $483/t cfr on Wednesday.

Another mill has bought Baltic-origin HMS 1&2 80:20 at $487/t cfr. The supplier was earlier offering the material at $490/t cfr. The buyer says he managed to decrease the price to this level due to a claim related to a past booking.

A flat steel mill in the south is heard to have booked EU-origin HMS 1&2 80:20 at $483/t cfr. The cargo was offered on Wednesday at average $487/t cfr.

A long steel mill has bought UK-origin HMS 1&2 80:20 at $491/t cfr for early shipment, meanwhile.

Turkish mills are seen paying a premium for early-shipment cargoes due to their urgent requirement for material.

A Turkish mill tells Kallanish: “I desperately need material to prevent my production from halting. The urgent need for a prompt-shipment cargo will most probably force me to pay a higher price.”

Following these bookings, however, suppliers are seen targeting to sell HMS 1&2 80:20 at higher prices of around $500/t cfr. Market participants believe this price level can easily be reached this week, particularly for prompt-shipment cargoes.

Burcak Alpman Turkey