Turkish scrap import prices increased further last week after at least two new bookings were confirmed. Bolstered by improved domestic rebar demand, mills are seen concluding more bookings before the Eid holiday, observers say. In Europe the sentiment is relatively good but in the US some pressure is starting to be felt in the market, indicating that August could see prices stabilise or reduce slightly globally.

The latest scrap deals to Turkey last week comprised a US-origin cargo of HMS 1&2 80:20 at $267/tonne cfr Turkey, shredded at $272/t and bonus at $277/t. A Baltic-origin cargo was meanwhile booked at $273/t cfr Turkey for August shipment of 13,000 tonnes of HMS 95:5. 

These bookings take HMS 80:20 closer to the $270/t cfr Turkey mark that suppliers were aiming for after prices increased earlier on fresh Baltic-origin deals.

Although demand for Turkish rebar from Asia and the US remains lacklustre following Turkish mills’ price hikes, some material shortage was observed in the Payas region as a result of domestic and Syrian demand.

EUROPE
European scrap prices have increased in export markets amid a stronger euro against the dollar and high demand for scrap.

Although dock prices have remained stable at €190-195/tonne ($217-223) delivered in the Benelux, the stronger euro is making them uncompetitive in export markets. 

Exporters were paying last week €190/t delivered for collection, and are seen unable to collect satisfactory tonnages as flow into yards gets slower at this level.

A European scrap supplier says: “I have a bid from an exporter in Holland at €197.5/t delivered today. But I’m not interested to sell at this level. I am targeting at above €200/t delivered.”

European suppliers were offering at $260-265/t cfr Turkey last week. Turkish scrap demand will most likely continue before the Eid holiday which starts on 30 July.