Posted on 04 Jan 2023
Scrap suppliers’ post-holiday price targets are even higher, although there are not many offers in the Turkish scrap market amid continuing holidays in some supplier countries.
Latest booking was confirmed from the EU at average $402/tonne cfr for 30,000 tonnes of HMS 1&2 80:20, 5,000t of shredded and 5,000t of P&S on 29 December.
Although Turkish mills are inquiring about scrap this week, imported scrap offers are quite scarce. This is supporting most market participants’ higher price expectations.
A Benelux supplier tells Kallanish: “There are multiple mills inquiring about scrap while there are no offers in the market. I would not be surprised to see $410/t cfr levels this week. No mill can buy scrap below $400/t cfr today,”
Another supplier says: “The main issue is the supply of scrap. Even short-sea suppliers are not offering any material. US and European suppliers are not expected to offer HMS 1&2 80:20 below $420/t and $410/t cfr respectively. A $5/t discount may be applicable today, however, I am expecting US prices to reach $420/t cfr levels in the coming period.”
A mill says: "Besides tight supply, suppliers are finding support from the recent increases seen in rebar prices and the decrease in electricity prices. Although there are not many offers in the market, I am expecting them to offer HMS 1&2 80:20 at above $410/t cfr."
Benelux exporters, meanwhile, are seen to have returned from holidays with €10-15/t ($10.56-15.84/t) dock price increases. Most are seen trying to source HMS grade at €325/t delivered on Tuesday.
Turkish mills that need to source scrap have further increased their domestic and shipbreaking scrap buying prices, meanwhile.
While rebar export demand remains weak, the lively demand in Turkey’s domestic market, which slowed on Monday, was on halt on Tuesday. Mills’ offers stood mostly at $700-715/t ex-works levels, depending on the region.
Source:Kallanish
