Import prices for ferrous scrap into Turkey rose Tuesday as talk of a higher cargo was readily accepted by both buy and sell sides of the market.
The most recent sale was ex-Baltic to an Iskenderun EAF-based producer, containing 80:20 at $272/mt and a total cargo volume of 23,000 mt.
Initial reports on the cargo came from the freight side of the market, as the seller was heard seeking a vessel to carry the material.
A more firm price was heard later from sources in the scrap market and accepted as representative value on Tuesday.
This followed talk of another cargo, believed to be booked on Wednesday or Thursday last week.
An international trading house sold this cargo out of the US, with material originating from Florida. The cargo contained 16,000 mt of 80:20 at $268/mt, 5,000 mt of shred at $273/mt and 5,000 mt of bonus at $278/mt and was bought by another EAF-based producer in the Marmara region.
"The market is a little more active this week. Prices are fairly stable though," said a Baltic seller. "But the EU market is looking a little stronger so it is unlikely they will export with these levels, so it's up to the US, or maybe a couple of Baltic cargoes."
Gains seemed to be expected by both sides of the market, with a buyer in Turkey referring to Tuesday's cargo as evidence of the market remaining cheap.
"There is a lack of rebar and billet in the domestic market now so it is triggering an increase," said a Turkey-based agent for several European scrap sellers. He saw another $5-10/mt rise within the next 10-15 days.
S&P Global Platts assessed HMS I/II 80:20 at $272/mt on Tuesday, up $3/mt from Friday. There was no assessment Monday due to a UK national holiday.
The end of May will mark the beginning of Ramadan in 2017, challenging expectations that Turkish producers will need to keep their finished product order books consistent for June.
Purchasing of scrap has been light throughout April, with visible volumes in the market falling well short of the same month in 2016.
But the start of Ramadan was later in 2016, falling a week into June, and contributed to a purchasing freeze from Turkish mills through May.
This places the current time-line in a similar place to the silent market this year, where a month without purchasing chased the market down $90/mt.
